MADISON (WKOW) -- The Bon-Ton Stores announced Monday that it had received a signed letter of intent from an investor group to acquire the company as a going concern in a bankruptcy court-supervised sale process.
The news release did not have additional information on how the sale would affect previously announced closures of stores in Madison, Janesville and Beloit.
Bon-Ton notified the Wisconsin Department of Workforce Development earlier this month that it planned to close two Boston Store locations in Madison and one in the Janesville Mall.
Bon-Ton operates stores under a variety of names including Boston Store, Elder-Beerman, Carson's, Younkers and Herberger's.
In February, Bon-Ton filed for Chapter 11 bankruptcy protection and announced a first round of closures, including the Elder-Beerman store in Beloit.
DWD said that 291 employees at the stores will be affected by the most recent closings, which are expected to begin in June 5.
Bon-Ton and the investor group are in the process of finalizing an asset purchase agreement in advance of an auction, which is now scheduled to be held on April 16, 2018, according to a Bon-Ton news release.
"We are pleased to have received this signed letter of intent and are advancing our discussions with the investor group to complete an asset purchase agreement as we proceed toward the court-supervised auction," Bill Tracy, president and chief executive officer said.
The investor group is composed of DW Partners, Namdar Realty Group (including its partner Mason Asset Management) and Washington Prime Group (the "investor group"), pursuant to which the investor group proposes