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Bon-Ton Closing 40 Stores as Losses Mount

Image: Bon-Ton Closing 40 Stores as Losses Mount

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By    |   Friday, 17 November 2017 06:15 AM

Bon-Ton Stores Inc. will be closing 40 locations as losses mounted in the third quarter, its president and chief executive officer William Tracy said in a statement Thursday while announcing its latest financial report, the Milwaukee Journal Sentinel stated.

The stores have lost money for the past six years, reporting $44.9 million in losses over the third quarter fiscal year, with sales tumbling 7.6 percent, the newspaper reported. Bon-Ton has loss $135.4 million overall this year, per the Journal Sentinel.

Bloomberg had reported earlier this month that Bon-Ton and Sears Holdings Corp., was rated as "distressed" by Moody's.

"While results in the third quarter fell short of our expectations, we are taking more aggressive actions to fuel improved performance as well as strengthen our financial position," Tracy said in a statement released by Bon-Ton.

"We are executing with a sense of urgency as we work to enhance our merchandise assortment, drive growth in omnichannel, and implement a more focused marketing strategy to improve traffic and customer engagement," he continued.

Tracy said the store closing will happen through 2018 as Bon-Ton focused on cost reductions and announcing "profit improvement initiatives."

"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 statement. "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."

Bloomberg wrote in October that Bon-Ton, which has 260 stores in 24 states, had hired PJT Partners and AlixPartners this year to examine options for handling its more than $1 billion debt load.

Bon-Ton shares have lost 75 percent of their value this year as it struggled with declining comparable-store sales and slower foot traffic, Bloomberg stated. Macy’s Inc., J.C. Penny Co., and Sears Holdings Corp. have all closed underperforming stores recently, the broadcaster noted.

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Bon-Ton Stores Inc. will be closing 40 locations as losses mounted in the third quarter, its president and chief executive officer William Tracy said in a statement Thursday while announcing its latest financial report.
bon-ton, closing, 40 stores
338
2017-15-17
Friday, 17 November 2017 06:15 AM
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