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Bon-Ton said to prep bankruptcy as rescue plan collapses

The filing detailing the bankruptcy talks shows Bon-Ton is running low on cash. The documents exchanged between the company and debtholders put the company's cash balance at no more than $7 million as it heads into what is typically one of the slowest quarters for retailers. In its last quarterly report covering the period ended Oct. 28, it had $7.3 million in cash. Private equity firm Sycamore Partners had held talks last year to explore purchasing some of the retailer's assets, Bloomberg News reported in October. An expansion could involve chains that Sycamore already owns, such as Belk Inc., a department store with outlets in 16 southern states. The value of Bon-Ton's 8 percent notes due in 2021 has drifted lower since the company said it would skip a Dec. 15 payment and use a 30-day grace period. The notes traded Thursday at 15.25 cents on the dollar, according to prices reported on Trace, about half of what they fetched in mid-December before Bon-Ton said it was skipping the interest payment. The stock fell 9 percent to 14.5 cents at 9:43 a.m.

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