Bon-Ton, owner of Younkers stores in Duluth and Superior and Herberger’s stores in Virginia and Rice Lake, Wis., announced Monday it will enter a court-supervised restructuring via the Chapter 11 bankruptcy code.
As previously announced, the company is closing 47 stores in 2018, including the Younkers stores in Superior and Marquette, Mich.
“We are currently engaged in discussions with potential investors and our debtholders on a financial restructuring plan, and the actions we are taking are intended to give us additional time and financial flexibility to evaluate options for our business. Bon-Ton has seven well-loved brands and associates who have remained committed to delivering excellent service to our customers for decades. During this court-supervised process, we plan to continue operating in the normal course and executing on our key initiatives to drive improved performance,” said President and CEO Bill Tracy. Those other stores include Bon-Ton, Bergner’s, Boston Store, Carson’s and Elder-Beerman.
With the exception of stores that are set to close, Bon-Ton will continue to honor return policies, warranties, gift cards and merchandise programs, the company said, along with loyalty programs.