Bon-Ton Stores auction gets attention on Monday. A joint bid by two liquidation firms will be the starting point for bidding Monday in the bankruptcy auction of Bon-Ton Stores.
Bon-Ton, the parent company of Boston Store, Younkers and other department store brands, has designated an undisclosed bid by Hilco Merchant Resources and Gordon Brothers Retail Partners as the baseline bid.
That means it is the top bid to date, and sets the floor for bidding in Monday’s auction of the company and its assets.
Hilco and Gordon Brothers are part of a group that is running the going-out-of-business sales for Toys R Us and Babies R Us stores in the U.S.
A decision in U.S. Bankruptcy Court in Delaware last week dealt a setback to efforts by Bon-Ton executives to sell the company to a buyer that would keep it going and try to turn around its finances. Bon-Ton hasn’t been profitable since 2010.
Bon-Ton issued a statement: “We are making every effort to sustain Bon-Ton as a going concern.”
It said the Hilco and Gordon Brothers serve as a baseline to evaluate other potential offer. It also said it remains in discussions with the investor group to reach an agreement for Bon-Ton to be acquired as a going concern.”
In addition to Boston Store and Younkers, Bon-Ton operates department stores under the brand names Bergner’s, Bon-Ton, Carson’s, Elder-Beerman and Herberger’s.