Bon-Ton, parent company of Elder-Beerman, files for bankruptcy


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.

» TRENDING BUSINESS NEWS: LIST: Bon-Ton announces store closing locations

The Company’s stores, e-commerce and mobile platforms under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates are open and operating as usual. 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.

Only one store in Ohio will be impacted, and no local stores will shut down as a result of this round of closures.

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.

» RELATED: New Elder-Beerman shops opening in Dayton

Elder-Beerman has a deep-rooted presence in the Miami Valley — and it can be traced back to another store, Boston Dry Goods, in 1883. The Boston Dry Goods store was opened by Thomas Elder, William Hunter, Jr. and Russell Johnston on East Third Street in the early 1880s. It sold texiles, clothing and groceries, and it later became the Elder & Johnston Co.

In 1962, Dayton businessman Arthur Beerman, who had opened two Beermans for Bargains junior department stores in 1950, merged his store with the Elder & Johnston Co. During the 1960s the Elder-Beerman Co. opened numerous department stores in the region, including Hamilton and Richmond, Ind.

» TRENDING BUSINESS NEWS: Will more stores close in 2018? No comeback for traditional retailers

The company continued to expand, acquiring department stores in Michigan, Illinois and Kentucky. In 1993, the 50th store opened at the Mall at Fairfield Commons in Beavercreek. In 2003, Elder-Beerman was acquired by Bon-Ton Stores, Inc.

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.

Bon-Ton could also reduce the number of distribution centers from three to two, shutting down its facility in Fairborn.

FIVE FAST BUSINESS READS

• Move over, bitcoin. GE researching blockchain technology

• Elder-Beerman parent company says 60+ stores could close under plan

• Kroger reportedly had development talks with Alibaba

• German grocery chain Lidl halts plans to open local store

• Bitcoin prices are plunging. What’s really going on with cryptocurrency?



Reader Comments ...


Next Up in Business

Home Depot hiring for more than 200 jobs in Dayton region
Home Depot hiring for more than 200 jobs in Dayton region

The Home Depot is hiring 225 associates in Dayton and 80,000 associates nationwide. Interested applicants can apply online at careers.homedepot.com, or job seekers can text HOMEDEPOT to 52270 and receive a link to apply to hourly positions in their area. Available positions vary by store. » TRENDING NEWS: #NationalChiliDay: These are the top...
SVG invests $1M in former Eastgate property
SVG invests $1M in former Eastgate property

Rapidly growing auto dealer Steve VanGorder has bought land for an expanded dealership in Beavercreek. Greene County property records show that SVG Properties paid just over $1 million for property at 3415 Seajay Drive, the former home of Eastgate Ford. The purchase was of nearly 5.8 acres of land. SVG Motors has locations in Dayton at 400 Shoup Mill...
#NationalChiliDay: These are the top 10 chili cities in the U.S.
#NationalChiliDay: These are the top 10 chili cities in the U.S.

Where should you celebrate National Chili Day? Cincinnati, of course. A study by one of the world’s largest chili purveyors shows that residents of cities across the country love this classic comfort food as much or more than their Long Star State counterparts. The internal analysis, conducted by Wienerschnitzel in honor of National Chili Day...
$223M Silfex plant, 400 jobs in Springfield: 3 things to know
$223M Silfex plant, 400 jobs in Springfield: 3 things to know

Silfex, an Eaton-based manufacturing company that has pledged to bring 400 jobs to Springfield, will start construction on its new $223 million plant, possibly as early as next week. Here are three things to know about the manufacturer and its pledge to bring more jobs to the region. » READ MORE: Construction to start on $223M Springfield plant...
Toys “R” Us reportedly plans to close another 200 stores
Toys “R” Us reportedly plans to close another 200 stores

Toys “R” Us is reportedly planning to close another 200 stores and lay off part of its corporate staff. The Wall Street Journal reported the toy chain plans to close another 200 stores, after previously announced it would close about 180 stores. The latest shutter would cut nearly in half the number of U.S. stores it had before its bankruptcy...
More Stories