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Court Approves 363 Sale of The Bon-Ton Stores to Second-Lien Group, Tiger Capital, Great American

MILWAUKEE, April 18, 2018 — The Bon-Ton Stores, Inc. announced that the U.S. Bankruptcy Court for the District of Delaware has approved an asset purchase agreement between the Company and a joint venture composed of the holders of the Company’s 8.0% Second Lien Secured Notes due 2021 and Great American Group, LLC  and Tiger Capital Group, LLC.

Under the approved agreement, the joint venture group will acquire the inventory and certain other assets of the Company. The joint venture was the winning bid in an auction held pursuant to Section 363 of the U.S. Bankruptcy Code on April 1617, 2018.

The winning bid, reported by Reuters to be about $775.5 million, edges out a second interested investor group comprised of DW Partners, Namdar Realty Group, and Washington Prime Group which signaled it had hoped to keep some off the stores open.

Reuters reported that a portion of the winning bid came in the form of a credit bid, or when a creditor uses some of what they are owed instead of cash, sources told Reuters. Bondholders’ credit bid contributed at least $100 million to the value of the winning bid, according to the sources.

“While we are disappointed by this outcome and tried very hard to identify bidders interested in operating the business as a going concern, we are committed to working constructively with the winning bidder,” Chief Executive Bill Tracy said in a statement.

The BonTon Stores said it is committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on associates, customers, vendors and the communities we serve.

The company’s stores, ecommerce and mobile platforms under the Bon-Ton, Bergner’s, Boston Store, Carson’s, ElderBeerman, Herberger’s and Younkers nameplates will remain open throughout the store closing sales.

Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as the Company’s legal counsel, AlixPartners LLP is serving as restructuring advisor and PJT Partners, Inc. is acting as financial advisor.