Bon-Ton Files Bankruptcy

The Bon-Ton Stores (York, Pa.) has filed for Chapter 11 bankruptcy protection. The move is intended to give the company more time and financial flexibility to evaluate its options.

The company is conducting “constructive discussions” with creditors in hopes of identifying “a viable path forward,” according to USA Today, which could include asset sales or significant debt cuts.

Bon-Ton has also hired an outside agency to liquidate its assets if it can’t find an alternative, but it's hoping to keep stores open by selling the entire company and, consequently, asked a federal bankruptcy judge to approve procedures for a potential sale.

This follows news last week that the company was moving forward in closing 42 stores across its various banners.