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Group of investors sign letter of intent to acquire Bon-Ton Stores

RBR Staff Writer Published 10 April 2018

An investor group composed of DW Partners, Namdar Realty Group (including its partner Mason Asset Management) and Washington Prime Group have signed a letter of intent to acquire The Bon-Ton Stores.

Bon Ton Stores and the investor group are in the process of finalizing an asset purchase agreement before an auction, which is due to be held on 16 April 2018.

The company operates 251 stores, including nine furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates. 

The Bon-Ton Stores president and CEO Bill Tracy said: "We are pleased to have received this signed letter of intent and are advancing our discussions with the investor group to complete an asset purchase agreement as we proceed toward the court-supervised auction.

"With the help of our advisors, we will evaluate all qualified bids and are committed to maximizing value and pursuing the best path forward for the Company and our stakeholders.

Earlier this month, the company secured a permission from its lenders to extend the deadline for submitting qualified bids.

The company stated that the auction has been designed to give out highest or otherwise best offer and is subject to approval from Bankruptcy Court approval and other customary conditions. A hearing to approve the sale is expected to take place in the later part of the month.

Bon-Ton also stated that it is continuing to operate in an ordinary course as it completes its court-supervised restructuring process.

The company was required to provide notification under several state and federal laws of potential job losses even as it works to complete a sale as a going concern. The sale process is expected to preserve jobs.

The stores of the company will remain open and are continue to serve customers.

The company filed for Chapter 11 bankruptcy protection in February. It has already started liquidating some of its assets with plans to close down 40 stores across the US.

Image: Bon Ton receives letter of intent from prospective buyers. Photo: Courtesy of The Bon-Ton Stores, Inc.