U.S. department store chain Bon-Ton files for bankruptcy

Bergner’s and Carson’s parent in bankruptcy.  In additional to the local store in Cherry Valley there is a distribution center in Rockford.

Reuters Staff

(Reuters) - Bon-Ton Stores Inc said on Sunday it filed for bankruptcy protection to restructure its debt and explore a potential sale, making it the first major U.S. brick-and-mortar retailer to do so this year.

The York, Pennsylvania-based department store operator, which has about 260 stores, listed assets in the range of $50,001 to $100,000 and liabilities in the range of $500 million to $1 million, according to a Chapter 11 filing with the Delaware bankruptcy court.

Department store operators have been struggling to fend off online sellers like Amazon.com Inc as shoppers increasingly choose to shop over the internet and mall foot traffic declines.

Last year, more than 15 U.S. retailers filed for bankruptcy, the most in six years, as consumers moved more of their shopping online.

During the court-supervised process, Bon-Ton plans to continue operating in the normal course, it said.

Bon-Ton said it received a commitment of up to $725 million in debtor-in-possession financing from its existing ABL lenders to support its operations.

The company reiterated it would shutter 47 stores across the country, with the bulk concentrated in Illinois, Indiana, Pennsylvania and Wisconsin.

“We are currently engaged in discussions with potential investors and our debtholders on a financial restructuring plan,” Chief Executive Bill Tracy said in a statement.

Bon-Ton said its stores, e-commerce and mobile platforms under the Bon-Ton, Bergner‘s, Boston Store, Carson‘s, Elder-Beerman, Herberger’s and Younkers nameplates are open and operating as usual.

AlixPartners LLP is serving as restructuring adviser and PJT Partners Inc is acting as financial adviser, the company said.

Reporting by Subrat Patnaik in Bengaluru; Editing by Gopakumar Warrier

Above is from:  https://www.reuters.com/article/us-bon-ton-stores-bankruptcy/u-s-department-store-chain-bon-ton-files-for-bankruptcy-idUSKBN1FP0AR

Department store chain Bon-Ton files for bankruptcy protection

• Bon-Ton Stores files for Chapter 11 bankruptcy protection.
• The retailer will explore strategic alternatives, which include a sale of the company.
• Bon-Ton is in the midst of closing more than 40 stores across the U.S.

Lauren Thomas | @laurenthomasx3

Published 5 Hours Ago Updated 2 Hours Ago CNBC.com

Derek Davis | Portland Press Herald | Getty Images

A Bon-Ton store in South Portland, Maine.

Bon-Ton Stores has filed for Chapter 11 bankruptcy protection, the largest retailer to do so this year.

The regional department store chain, which has dual headquarters in Milwaukee and York, Pennsylvania, has been burdened with massive debt as it struggles to grow sales and move operations online in the face of Amazon.

Bon-Ton said Sunday it received a commitment of as much as $725 million in financing from existing lenders to support its operations.

"During this court-supervised process, we plan to continue operating in the normal course and executing on our key initiatives to drive improved performance," CEO Bill Tracy said in a statement.

The company, which operates about 260 retail locations, recently laid out plans to shutter more than 40 stores across the U.S. under its various banners (i.e. Carson's, Elder-Beerman, Herberger's and Younkers).

"We are currently engaged in discussions with potential investors and our debtholders on a financial restructuring plan," Tracy said.

While under bankruptcy protection, Bon-Ton said it will also explore strategic alternatives, including a sale of the company or assets as a part of the reorganization plan. The process will also make it easier for Bon-Ton to renegotiate its leases or ask for rent reductions.

The department store chain recently reported a dismal holiday season, despite many of its peers, including J.C. Penney, Kohl's and Macy's, doing well against a strong economic backdrop.

Bon-Ton has said it plans to invest more in private-label brands, refreshing the overall store layout, ditching excess inventory and strengthening its e-commerce business.

"The harsh reality is that while Bon-Ton's management put in great effort to make the business sustainable, they were always running up a down escalator," GlobalData Retail managing director Neil Saunders said.

"A scaled-down business may have a chance of survival," Saunders said. But Bon-Ton must resolve the fact that its products are "undifferentiated, unclear and have become increasingly irrelevant to consumers."

More than 20 retailers, including Toys R Us, Hhgregg, Gymboree and RadioShack, filed for bankruptcy protection in 2017. And with another load of retail debt coming due this year, several others could do so.

Lauren ThomasRetail Reporter

Above is from:  https://www.cnbc.com/2018/02/05/department-store-chain-bon-ton-files-for-bankruptcy-protection.html

China launches dumping probe into U.S. sorghum imports amid rising trade tension

Reuters 17 hours ago

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By Dominique Patton

BEIJING (Reuters) - China has launched an anti-dumping and anti-subsidy investigation into imports of sorghum from the United States, the Ministry of Commerce said on Sunday, less than a fortnight after U.S. President Donald Trump slapped steep tariffs on imports of solar panels and washing machines.

Beijing's action is expected to immediately hit demand for the upcoming U.S. sorghum crop, exports of which are largely used to feed China's huge livestock sector, and send shivers through the entire U.S. farm sector.

China is the top buyer of U.S. sorghum as well as soybeans, the United States' most valuable export to the world's No. 2 economy.

"I personally believe this is China's response to Trump's action on washing machines," said Li Qiang, chief analyst at agriculture consultancy Shanghai JC Intelligence Co Ltd.

"If he takes any further measures, they will consider soybeans," he added.

The U.S. shipped 4.76 million tonnes of sorghum to China in 2017, the bulk of China's roughly 5 million tonnes of imports of the grain that year, and worth around $1.1 billion, according to Chinese customs data.

That makes it almost twice as valuable as exports of Chinese aluminium alloy sheet to the U.S., also subject to recent trade action by Washington, which is being seen as another possible trigger for Beijing's move.

Like the U.S. aluminium investigation, China's commerce ministry investigation into sorghum was self-initiated.

The ministry said it had initiated the investigation because the local industry included a large number of small growers who were unable to prepare the necessary documentation.

Preliminary evidence and information found that imported sorghum from the U.S. had been exported at a lower than normal value, it said, damaging local producers.

The trade action comes a year after Beijing slapped hefty anti-dumping and anti-subsidy duties on imports of distillers dried grains (DDGS) from the U.S., another product used as a feed ingredient, although it recently reduced VAT on DDGS imports.

Exports of U.S. soybeans to China are also under pressure from stiff competition from rival exporter Brazil, with export sales hitting a seven-month low last week.

The investigation into sorghum dumping will be carried out for the period from Nov. 1, 2016 until Oct. 31, 2017, while an investigation of industrial injury will be from Jan. 1, 2013 until Oct. 31, 2017, said the commerce ministry statement.

The investigation should be complete by Feb. 4, 2019, it said, but can be extended until Aug. 4, 2019.

Above is from:  https://www.yahoo.com/finance/news/china-launch-anti-dumping-investigation-081415570.html