Bankrupt store chain Bon-Ton gets acquisition offer

Bon-Ton Stores Inc has confirmed to have received an acquisition offer from an investor group, two months after the department store chain filed for bankruptcy protection.

The investor group includes U.S. mall owners Namdar Realty Group and Washington Prime Group Inc, for whom Bon-Ton is a significant tenant, and credit-focused fund manager DW Partners.

The York, Pennsylvania-based retailer, with 23,000 employees and 256 stores across 23 states, filed for creditor protection in February and said it was on track to close 47 stores in 2018 as conventional brick-and-mortar operators are struggling to adapt to rapidly changing consumer tastes and a rise in e-commerce.

Bon-Ton Stores said it received a signed letter of intent from the investor group with the parties finalizing an asset purchase agreement before an auction to be held on April 16.

A hearing on the bankruptcy-court supervised sale process is expected later in April, the company said.