Bon-Ton announces plans to close 40 store locations in 2018
YORK — The Bon-Ton Stores, Inc., announced Thursday that it plans to close 40 stores after sales in the third quarter of the fiscal year were down 6.6 percent from 2016.
There was no word in the announcement on which locations will be closed.
Net loss in the third quarter was $44.9 million, compared with net loss of $31.6 million in third quarter 2016, the company said.
Those results fell short of the company’s expectations, according to president and CEO William Tracy.
But, Tracy said, “We are taking more aggressive actions to fuel improved performance as well as strengthen our financial position.”
Those actions include the closure of 40 store locations in 2018, Tracy said.
“This will enable us with moving forward with a more productive store footprint and redirecting capital expenditures toward investments designed to drive sales growth,” Tracy said in the announcement. “We are working with our advisors to proactively engage with our debt holders to establish a sustainable capital structure to support the business.”
“We believe that the actions we are taking position us to drive improved and consistent financial performance over the long term. With our new merchandising initiatives in place and more seasonable November weather, we are already seeing a positive comparable store sales trend and believe we are well-positioned for a successful holiday season.”
The Bon-Ton Stores, Inc., with corporate headquarters in York and Milwaukee, Wisconsin, operates 260
stores, which includes nine furniture galleries and four clearance centers, in 24 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates.
The stores offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings.