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


The parent company of Elder-Beerman stores could file bankruptcy as early as Feb. 4 if it cannot come to terms with its creditors, but in the meantime the giant retailer filed plans today that would allow it to restructure to become profitable.

Under the plan, Bon-Ton announced today that another 40 “underpeforming” stores could potentially close this year, in an effort to turn around the failing business.

On Jan. 16, the company entered into forbearance agreements with its lenders following failure to make the debt payment within a 30-day period allowed after originally postponing the payment. The agreement expired on Jan. 26.

The retailer’s plans to turn around the business include: providing more popular merchandise, improving its marketing and increasing online-related sales by 50 percent within the next two years. The retailer identified 100 of the worst performing stores in its portfolio, and plans to sell or eliminate some.

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

The company said about 42 store closures could occur this year, and three stores could be sold to other owners. The worst performing stores were located in dying malls and were “suffering from overwhelming competitive pressures,” according to Bon-Ton. Another 20 or more stores could be added to Bon-Ton’s “watch list” of failing stores, which would then be monitored for “signs of further deterioration.”

Bon-Ton could also reduce the number of distribution centers from three to two, shutting down its facility in Fairborn. It would save the company nearly $2 million in payroll.

FIVE FAST BUSINESS READS

• Gander Mountain stores to reopen under new name

• Walmart reportedly cutting more than 1,000 jobs

• German grocery chain Lidl halts plans to open local store

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

• Grand opening date set for At Home store in Beavercreek



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