Bon-Ton warns of mass layoff if company is not sold

  • Bon-Ton warns of mass layoff if company is not sold

Bon-Ton warns of mass layoff if company is not sold

The Wisconsin Department of Workforce Development announced Bon-Ton Stores has contacted the state, warning it could potentially close 12 Wisconsin stores and its corporate office in Wisconsin.

Paul Jadin, president of the Madison Region Economic Partnership, said the announcement by Bon-Ton is further evidence of the changing environment for brick and mortar retailers. It also has Herberger's stores in Hastings, Kearney, Norfolk, North Platte and Scottsbluff.

Bids were due from interested parties this past Wednesday but it was not clear Friday if any bids were received.

According to bankruptcy filings in U.S. District Court in DE, an auction of Bon-Ton's assets is set for Monday.

Bon-Ton, Younkers parent company, says employees in Marshfield will begin to be laid off on June 5. We are encouraged by the interest in Bon-Ton and we hope that jobs will be preserved through a sale process. While that bid would offer a path for Bon-Ton to survive, Reuters reported a competing bid from firms specializing in liquidation was expected to come in at about $740 million.

The spokeswoman said talks regarding the sale of the chain are ongoing. According to media reports, it has provided WARN notices in several other states over the past week.

"If you ask the question - what does Bon-Ton stand for?"

A release from the Wisconsin Department of Workforce Development says 108 employees will be impacted by the closure.

No other stores were listed. The filing says maintenance and fix issues are required to be covered by Bon-Ton pursuant to its lease, but that the retailer has "intentionally deferred" such work.

Bon-Ton, which filed for bankruptcy in February, is said to be a key tenant of both Namdar and Washington Prime malls.

Bon-Ton now operates more than 200 stores across 23 states, under the nameplates of Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers.