- Kara Driscoll Staff Writer
The Bon-Ton Stores Inc., parent company of Elder-Beerman, has filed for bankruptcy.
The company and its subsidiaries have filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
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Here are three questions answered for you:
1. Will any local stores close as a result of the company filing for bankruptcy?
No. No local stores have been impacted, but one store in Ohio will close. As previously announced, the company is closing 47 stores this year, four of which closed in January and one store that is near completion and 42 additional stores. Store closing sales began on Feb. 1 and will run for approximately 10 to 12 weeks.
Bon-Ton could also reduce the number of distribution centers from three to two, shutting down its facility in Fairborn.
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2. What’s happening with the bankruptcy?
Bon-Ton has received a commitment from its existing lenders for up to $725 million in debtor-in-possession financing which, subject to court approval, is expected to support the company’s operations during the financial restructuring process.
3. Why does it matter to the Dayton region?
Bon-Ton has a major presence in the Dayton region. Along with its distribution center in Fairborn, there are Elder-Beerman stores across the region in Dayton, Huber Heights, Kettering, Piqua and Beavercreek. Bon-Ton closed a store location at the Ohio Valley Mall in St. Clairsville, Ohio in late March.
The Elder-Beerman store in Towne Mall Galleria in Middletown, which is in Warren County, also closed earlier this year. The closing impacted 65 employees. If more stores closed in the Dayton region, hundreds of jobs would be impacted.
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