Bon-Ton Shares Up on ABL Amendment
The amendment provides Bon-Ton with financial flexibility for the holiday season.
Investors sent shares of The Bon-Ton Stores Inc. up 71 percent Wednesday, pleased that an amendment to the retailer’s ABL credit facility provides the struggling retailer with increased flexibility for the holiday season.
The amendment is to Bon-Ton’s $880 million ABL Tranche A and Tranche A-1 credit facility.
William Tracy, president and chief executive officer, said, “As we build our inventory position heading into the holiday season, we are pleased to have increased access to capital. We look forward to continuing to work closely with our vendor partners to ensure we are delivering quality merchandise and an exceptional shopping experience for our customers in our stores and online.”
Shares of Bon-Ton were trading at $1.04 in early afternoon trading Wednesday.
In an effort to enhance its liquidity, Bon-Ton in September said it agreed to an $18.9 million sale-leaseback deal for its Herberger’s site at the Rosedale Center in Roseville, Minn. The company said proceeds from the transaction would be used to repay outstanding debt. Following the transaction, the retail will lease the property for an initial 20-year term, with the option to extend the term for four additional successive period of five years at market rents.
And, in an effort to grab market share in the fashion space, the retailer in August put together a list of must-have fashion trends — an elevated jacket, the romantic blouse, statement denim — and showcased 40 outfits for a “New and Now” runway fashion show in 12 cities across the country.
The one thing the retailer — like many of its competitors — continues to do is hold various promotions on its merchandise. It is holding a friends and family event that ends Saturday. This one touts the event as one where consumers can “Save on Nearly Everything,” with discounts on participating brands ranging from 10 percent off for tech and electronics; 15 percent for beauty and fragrance; 25 percent for home, luggage and watches, and 30 percent off apparel, fine jewelry, handbags and footwear.
The company is working with AlixPartners and PJT Partners Inc., who are its operational and financial advisers. It operates retailers under the nameplates Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers.