Only bids moving forward for Bon-Ton are for liquidation

Katrina Barker
April 18, 2018

In a letter to the Nebraska Department of Labor, Bon-Ton said more than 350 jobs were at risk, although it only listed its two stores in Omaha as being at risk of closing.

After more than seven decades of being in Sioux City, it appears Younkers department store will likely close its doors for good this summer.

Bon-Ton Stores Incorporated is a bankrupt chain of 200 regional department stores.

The Bon-Ton bankruptcy papers can be seen here. The auction ran late Monday and is still underway, according to NY research firm Reorg Research.

The end could be near for Bon-Ton Stores.

Bon-Ton filed for Chapter 11 bankruptcy on February 4.

A group of second lien bondholders had objected to Bon-Ton's request to pay the fee.

There are also six Herberger's stores in the Twin Cities as well as ones in Mankato and St. Cloud.

The Younkers brothers opened their first store - a general store in Keokuk - in 1862.

Once the company selects a winning bidder and the proposed deal is approved by the U.S. Bankruptcy Court in Wilmington, Del., the liquidator can begin selling the inventory, store leases, fixtures and intellectual property.

Two sources familiar with the matter told Reuters that the only bidders who competed at the court-supervised auction on Monday were liquidators.

Losing Younkers will be a major blow to Southbridge Mall, where the retailer has operated as a 50,000-square foot anchor tenant for more than three decades. Toys "R" Us announced in March that it was going out of business, although a toy mogul has launched a bid to try to buy 275 of the chain's more than 700 USA locations.

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