As the nation’s business economy continues to fluctuate, many businesses in Louisiana and elsewhere are struggling to stay afloat. In fact, a major department store based in another state is reportedly considering bankruptcy as a means to help overcome its $1.2 billion in debt. Bon-Ton has not formally filed for bankruptcy as of this time; however, sources say it appears the company is heading in that direction.
Bon-Ton is a parent company for several department store chains. It seems that highly decreased mall traffic and management problems are at the top of the list of issues that have thrust serious financial hardships upon the business. Bon-Ton is said to have taken advantage of a grace period to make a $14 million interest payment recently. However, the grace period is set to expire in the near future, and data shows the store chain did not fare so well during the holiday season, which it hoped would provide a significant financial boost.
Instead, comparable store sales fell nearly 3 percent during the 2017 holiday shopping season. Some say Bon-Ton is also planning to close at least 40 of its 260 stores. Intense pressure from creditors is likely only adding to the business’s current financial stress.
Louisiana companies in similar situations can explore several types of bankruptcy to get back on track financially. An experienced debt relief attorney is well-versed in bankruptcy regulations and can help determine which type of debt relief would be the most viable option for a particular situation. Any business owner who wishes to discuss potential solutions to a serious financial crisis can reach out to a bankruptcy attorney for support.