Bon-Ton Stores files for Chapter 11 bankruptcy protection

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NEW YORK (AP) -- Bon-Ton Stores, saddled with debt and struggling with weak sales as shoppers abandon traditional department stores, said it filed Sunday for Chapter 11 bankruptcy protection and was exploring a sale of all or part of the company.

The chain, which operates 260 stores in 24 states, largely in the Northeast and Midwest, made the filing in the U.S. Bankruptcy Court for Delaware. It had said earlier this year that its holiday sales fell, despite a solid economy in which many retailers did well.

Several dozen retailers, including Toys R Us, Payless ShoeSource and Gymboree Corp., have filed for reorganization over the past year. Amazon, meanwhile, saw its latest quarterly profit soar past $1 billion for the first time as it sold more voice-activated gadgets, enlisted new Prime members and benefited from its recent purchase of Whole Foods.

Bon-Ton, which operates stores under its own name as well as the Boston Store, Carson's, Younkers, Herberger's, and Elder-Beerman, had said in a recent regulatory filing that it was in talks with debt holders about restructuring its $1 billion in debt. It had said in November that it would shut dozens of stores in 2018, and this week specified 42 locations across the country, most of them in Wisconsin, Pennsylvania, Illinois and Indiana.

The company said Sunday that it intends to use the Chapter 11 process to "explore potential strategic alternatives" that may include selling all of the company or some of its assets.

Bon-Ton said it has received a commitment of $725 million in debtor-in-possession financing to operate during the restructuring process.