Mall Investors Make Offer To Save Bon-Ton From Liquidation
Washington Prime Group and its partners are borrowing a play from Simon Property Group and GGP in 2016 when they joined forces to save a major tenant, Aeropostale.
YORK, PA–Washington Prime Group, Namdar Realty Group and DW Partners have partnered to bid for the department store Bon-Ton to keep it a going concern, according to court filings and a statement by the Bon-Ton.
The investor group has put in a bid of $128 million to buy the department store chain in an auction, whose date has been pushed back from its originally scheduled date of April 9 to April 16. “With the help of our advisors, we will evaluate all qualified bids and are committed to maximizing value and pursuing the best path forward for the company and our stakeholders,” said CEO Bill Tracy in a prepared statement.
Bon-Ton is an important tenant for Washington Prime Group and the REIT and its partners are borrowing a play from Simon Property Group and GGP when they unexpectedly joined forces to save a major tenant, Aeropostale, from liquidating in 2016. The two REITs bid $240 million for the teen apparel retailer to keep it a going concern in their malls.
The Bon-Ton auction will be subject to Bankruptcy Court approval and other customary conditions. A hearing to approve a sale is expected to take place later in April.
On February 4, 2018, Bon-Ton filed for Chapter 11 bankruptcy. It has kept its various brands, which include Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates, open and operating as usual.