Bon-Ton reportedly in talks with private equity firm
A new report says a private equity firm has held talks with struggling department store operator Bon-Ton Stores Inc. about buying some of the retailer’s assets.
Bon-Ton, the parent company of Boston Store and Younkers, has spoken with Sycamore Partners, a New York firm, in recent weeks about a potential transaction, Bloomberg News reported Thursday. Bloomberg cited unidentified people familiar with the matter as sources for the report.
Bon-Ton spokeswoman Christine Hojnacki said Friday the company had no comment.
Sycamore specializes in consumer and retail investments, and says it works with management teams to improve profitability. Retailers in its investment portfolio include Belk, Coldwater Creek, Hot Topic, Jones New York, Nine West, Staples, Talbots, The Limited and Torrid.
The Bloomberg report is at least the second time in the past two years that Bon-Ton’s name has come up in connection with Sycamore. In early 2016, The Wall Street Journal reported that Sycamore Partners had approached Bon-Ton about combining operations with Charlotte, N.C.-based Belk Inc., a Southern department store chain Sycamore had just acquired for about $3 billion.
Coincidentally, recently departed Bon-Ton CEO Kathryn Bufano was a Belk executive before becoming Bon-Ton’s leader in 2014. She left BonTon last summer and was succeeded by William Tracy, who is the company’s fourth CEO since 2012.
Many retailers have struggled as online shopping has grown and foot traffic at malls has declined. But Bon-Ton, which has dual headquarters in Milwaukee and York, Pa., has been hit harder than some, posting losses for the past six years. Through the first half of its fiscal 2017 year, it had a loss of $90.5 million, with sales down about $93 million from the first six months of 2016.
The stock price of Bon-Ton has taken a beating, but had something of a rally this week after Bon-Ton announced it had amended its $880 million credit facility, giving the company immediate financial flexibility and additional liquidity heading into the holiday shopping season.
Bon-Ton operates 260 stores, including nine furniture galleries and four clearance centers, in 24 states in the Northeast, Midwest and upper Great Plains. In addition to Boston Store and Younkers, its department stores brand names are Bon-Ton, Bergner’s, Carson’s, Elder-Beerman and Herberger’s.