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Parent company of Herberger’s is “winding down operations”

Posted at 10:42 AM, Apr 18, 2018
and last updated 2018-04-18 12:42:33-04

Bon-Ton, the parent company of retailer Herberger’s, announced that it is "winding down operations" after declaring bankruptcy.

In a press release, the company said: "Bon-Ton will move forward in a constructive manner to ensure an orderly wind-down of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve."

There are several Herberger’s stores in Montana – in Holiday Village Mall in Great Falls, and in Havre, Butte, Kalispell, Missoula, and Billings.

We have received several reports that employees of the Herberger’s store in Great Falls were notified on Tuesday of the likely closure of the store; no date has been announced at this point.

We do not yet know how many employees are affected, nor whether another tenant has been lined up for the space.

The last "anchor" store to close at Holiday Village Mall was Sears; the space it occupied is now the location of PetSmart and Hobby Lobby.

Here is text from the press release by Bon-Ton:

On April 17, 2018, The Bon-Ton Stores announced the winning bid in an auction for the Company’s assets held pursuant to Section 363 of the U.S. Bankruptcy Code. Bon-Ton will move forward in a constructive manner to ensure an orderly wind-down of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve.

At this time, all of our Bon-Ton, Boston Store, Bergner’s, Carson’s, Elder-Beerman, Herberger’s and Younkers stores across the United States are open, and our e-commerce and mobile platforms are operating normally. We continue to 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, just as we always have.

Bill Tracy, Bon-Ton President and Chief Executive Officer: “While we are disappointed by this outcome and tried very hard to identify bidders interested in operating the business as a going concern, we are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve. We are incredibly grateful to all of our associates for their dedicated service to Bon-Ton and to our millions of loyal customers who we have had the pleasure to serve as their hometown store for more than 160 years.”

The company says that throughout the court-supervised asset sale process, the stores, e-commerce and mobile platforms under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates will remain open throughout the store closing sales.

Bon-Ton expects to provide more details about the liquidation plans and going out of business sales at its stores following approval of the winning bid by the Bankruptcy Court.


(FEBRUARY 5, 2018) Bon-Ton, the parent company of Herberger’s department store, has filed for Chapter 11 bankruptcy.

There are several Herberger’s stores in Montana – one in Holiday Village Mall in Great Falls, and in Butte, Missoula, Billings, and Havre.

The company says that the bankruptcy does not necessarily mean that any of its stores will close; they explained in a press release that they "expect to continue operating in the normal course." The company also noted that the "court-supervised process will allow us to continue to pay our associates and meet our obligations to operate without interruption consistent with Chapter 11 and applicable court orders."

The company announced last week that it plans to close 42 stores; none of the locations are in Montana. The nearest affected store that is slated to close is the Herberger’s in Chubbuck, Idaho.

On the Bon-Ton website, the following information is provided: 

Bon-Ton recently announced the closure of 42 additional stores. Are any additional stores being closed as a result of the Chapter 11 announcement?

As announced on January 31, 2018, we are closing 47 stores in 2018, four of which closed in January and one store that is near completion and 42 additional at which store closing sales began on February 1, 2018 and will run for approximately 10 to 12 weeks. For the full list of the store closures, please visit the Company’s investor relations website.

There are no plans to close additional stores at this time. Decisions regarding our store portfolio will continue to be made based on what makes the best sense for our business just as they always have.

press release from Bon-Ton states:

Bon-Ton has been taking action over the past several months to drive improved performance and strengthen the Company’s financial position, and has now taken another step forward in its efforts by filing voluntary petitions for a court-supervised restructuring under Chapter 11. We are currently engaged in constructive 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.

For all of our customers, vendors and talented associates – our Bon-Ton, Boston Store, Bergner’s, Carson’s, Elder-Beerman, Herberger’s and Younkers stores across the United States are open, and our e-commerce and mobile platforms are operating normally. We continue to 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, just as we always have.

We are committed to pursuing the path that we believe is in the best interests of our company and our stakeholders, and we will continue to provide our customers with quality merchandise and an exceptional shopping service as we move through this financial restructuring process.

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