Learn about the Story of Bon-Ton Holdings (an American Online Retailer and a Retail Store Chain), that was founded in 1898, How it Failed & Filed for Bankruptcy in 2018 after Rapidly Expanding in the 1990s & early 2000s. All the Facts are sourced from Free Public Resources (Wiki, Youtube etc.)
Based on the Public Facts and Information about Bon-Ton
Bon-Ton Holdings Inc. was an American online retailer and former department store chain founded in 1898. After rapid expansion in the 1990s and early 2000s, the original company had financial troubles, ultimately filing for bankruptcy in 2018 before being sold and liquidated. In September 2018, CSC Generation began operating as an online retailer headquartered in Merrillville, Indiana, with plans to open brick and mortar locations. In early 2021, CSC Generation sold all the Acquired Assets of Bon-Ton to New York-based BrandX.com, Inc in a Private Sale.
Learn What Led to the Decline of Bon-Ton in the Following Video by the Company Man
How was Bon-Ton Started ?
- The Bon-Ton was started in 1898, when Max Grumbacher and his father, Samuel, opened S. Grumbacher & Son, a one-room millinery and dry goods store on Market Street in York, Pennsylvania. The name “Bon-Ton” was drawn from a British term connoting the “elite” or “high society”. Through World War I and the Roaring Twenties, the Grumbacher’s store chain grew bigger and, in 1929, the company was incorporated as S. Grumbacher & Son, Inc. In 1931, Max’s son, Max Samuel (M.S.), joined the company.
- When Max the elder died in 1933, his widow, Daisy, and their two sons, M.S. and Richard, continued the business, forming a partnership in 1936. The Bon-Ton was a popular store destination on the classic radio show Fibber McGee and Molly, which aired from 1935 to 1959. Following World War II, the Grumbacher family decided to expand operations even further. In 1946, an additional Bon-Ton was opened, in Hanover, Pennsylvania.
- Two years later, the company moved outside Pennsylvania, acquiring Eyerly’s in Hagerstown, Maryland, and, in 1957, purchasing McMeen’s in Lewistown, Pennsylvania. These early moves set The Bon-Ton’s policy of growing into adjacent areas by opening new stores and acquiring existing businesses.
The Closing Years of Bon-Ton Reflected Major Losses, Drop in Revenue
The Bon-Ton’s final years were marked with a string of financial losses and executive turnover. From 2011 through 2017, the company did not post an annual profit. From 2011 through the company’s bankruptcy, it had four CEOs and three CFOs. In December 2013, Mike Nemoir, senior vice-president, announced he would retire after four decades in the fashion industry at Bon-Ton and its predecessor companies on March 28, 2014.
Failed Attempt of Launch & Expansion of In-Store and Online ‘Close To Home’ Shops
In fall 2016, Bon-Ton launched in-store and online “Close to Home” shops in 45 of its stores, selling locally sourced and locally themed products. In February 2017, the chain announced that it would expand these shops to at least 100 stores in 25 states and would partner with local designers, artisans and entrepreneurs in each market interested in selling their products in these shops. However, The company’s financial situation worsened rapidly in 2017, with same-store sales falling over 6% in both the second and third quarters. In November 2017, the company announced a store closure program, stating 40 to 45 stores would close after the holiday season.
Rapid Store Closure and Filing for Bankruptcy
During the first quarter of 2018, The Bon-Ton announced it would be closing 42 stores in 14 states, in addition to five stores previously announced. However, it was not enough to save the company from its large debt. On December 18, 2017, Bon-Ton Stores revealed it had failed to pay $14 million in interest that had been due December 15. The company entered into a grace period with its lenders. Analysis from Standard & Poor’s downgraded the company into selective default, and predicted a bankruptcy or out-of-court restructuring at the conclusion of the grace period. In February 2018, The Bon-Ton Stores Inc. filed for Chapter 11 bankruptcy protection.
Learn about the Downfall of Bon-Stores in the Following Retail Documentary by the Lost Departments
Liquidation of All the Remaining Stores
On April 17, 2018, The Bon-Ton announced it would liquidate all 267 stores after The Great American Group LLC and Tiger Capitol Group LLC bid $775.5 million for the retailer and after converting its Chapter 11 bankruptcy to Chapter 7. They acquired the inventory and other assets of the company and sold it all off.On August 30, Great America Group said all Pennsylvania locations were officially closed.
