Only bids moving forward for Bon-Ton are for liquidation

Younkers stores could shutter across Iowa as part of bankruptcy

Younkers stores could shutter across Iowa as part of bankruptcy

The Bon-Ton has 260 stores in 24 states, including eight in Western New York: at the Chautauqua Mall in Lakewood, Eastern Hills Mall in Clarence, South Transit Road in Lockport, McKinley Mall in Blasdell, Olean Center Mall, Sheridan Drive in the Town of Tonawanda, Southgate Plaza in West Seneca, and the former Summit Park Mall in Wheatfield.

Younkers has had a presence in the Siouxland market since 1947 when it acquired Davidson Brothers Co., a regional chain that once boasted locations in Le Mars and Sioux Falls in addition to its Sioux City flagship store.

The company, founded in 1898, has headquarters in York, Pennsylvania, and Milwaukee, Wisconsin.

Bon-Ton has not yet responded to the reports. On Monday evening, Kelley Cornish of Paul Weiss for the debtors began the auction by announcing the Hilco/Gordon Brothers bid as the stalking horse bid; counsel for the stalking horse bidder then bid 31 cents of retail value for the inventory, sources say.

Two sources familiar with the matter told Reuters that the only bidders who competed at the court-supervised auction on Monday were liquidators. But last week the judge overseeing the department store retailer's case nixed a proposal to pay the investor group a fee of $500,000 to compensate them for due diligence costs.

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.

Stores operated by Bon-Ton include Bergner's, Boston Stores, Carson's, Elder-Beerman, Herberger's and Younkers, but most of its stores have histories that predate the parent company. We will update this story when information becomes available.

Sports Authority Holdings Inc., apparel chain The Limited Stores LLC and electronics seller hhgregg Inc. are among the chains that have gone out of business recently.

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