BON-TON STORES COULD BE THE NEXT RETAILER TO FILE FOR BANKRUPTCY
Add The Bon-Ton Stores to the list of retailers hiring turnaround advisers. The Wall Street Journal reports the retail chain has enlisted the help of PJT Partners to help it figure out how to continue in the face of ballooning debt and deflated sales.
Citing unnamed sources, the publication says Bon-Ton needs to refinance more than $900 million in debt and prepare for a potential bankruptcy.
The company, which operates 260 stores in 24 states under a variety of nameplates, including Bergner’s, Herberger’s and Younkers, had already retained AlixPartners in a bid to overhaul its operations. In April, Bon-Ton landed on S&P’s list of retailers most likely to default due to its &63 million losses in 2016.
Looking at the chain’s productivity, Green Street Advisors says the department store would need to cut 15 percent of its existing store base to reach the sales per square foot it enjoyed in 2006. The company has seen positive performance from national brands like Under Armour and Tommy Hilfiger as well as good sales trend in fine jewelry, young men’s and denim. Going forward, the retailer plans to grow in its home décor and furniture assortments, which have been among the few bright spots.
