The U.S. Bankruptcy Court for the District of Delaware approved an asset purchase agreement for the acquisition of the Bon-Ton Stores. Under the approved agreement, a joint venture – composed of the holders of the company’s 8.0% second lien secured notes due 2021, Great American Group and Tiger Capital Group – will acquire the inventory and certain other assets of the company.
The joint venture was the winning bid in a Section 363 auction held on April 16-17, 2018.
Milwaukee and York, PA-based Bon-Ton will work with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on associates, customers and vendors. The company’s 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.
Paul, Weiss, Rifkind, Wharton & Garrison acted as legal counsel for Bon-Ton, while AlixPartners served as its restructuring advisor and PJT Partners as its financial advisor.
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