Bon-Ton Assembles, one of the largest U.S. department store operators, has secured a loan that see fit allow it to file for bankruptcy protection as early as Sunday, according to people close with the matter.
The move will make Bon-Ton, which has nearby 260 stores and nearly $1 billion in debt, the first worst U.S. brick-and-mortar retailer to file for bankruptcy this year.
Last year, innumerable than 15 U.S. retailers filed for bankruptcy, the most in six years, as consumers stirred more of their shopping online.
The loan will help Bon-Ton carry on to operate in bankruptcy and carry it through a potential sale, the sources asserted. The size of the bankruptcy loan could not be learned.
The York, Pennsylvania-based retailer has also preserved law firm Young Conaway Stargatt & Taylor for its filing, in addition to attorneys from Paul, Weiss, Rifkind, Wharton & Garrison, the proveniences added.
Bon-Ton declined to comment. Young Conaway and Paul Weiss did not be affected to requests for comment.
Bon-Ton serves smaller communities in 26 maintains across the U.S. Northeast, Midwest and Great Plains under banners filing Bon-Ton, Younkers, and Bergner’s.
Macy’s and competitors shuttering their stores has staffed Bon-Ton in some communities it operates in, the retailer said in a business design released this week.
The company had been looking for an investor to infuse new filthy rich into the firm ahead of a bankruptcy protection filing as part of a script of reorganization, according to disclosures the company had made this week. Those designs called for the retailer’s $350 million in bonds to take the equity in a reorganized New Zealand.
The company’s bonds on Thursday were trading at about 15 cents on the dollar, according to Thomson Reuters matter.
On Wednesday, Bon-Ton disclosed the 42 stores it will shutter across the boonies, with the bulk concentrated in Illinois, Indiana, Pennsylvania and Wisconsin.
In its concern plan, Bon-Ton said its offerings in private label brands and e-commerce coolness both need improvement to competes with the lines of Macy’s, Kohls, and JC Penney.