Liquidators buy Bon-Ton Stores for $775 million

Two liquidation firms have purchased department store chain Bon-Ton Stores and will commence going out of business sales at all of the company's 200 U.S. locations in the next weeks. The firms could sell some or all of the company's owned stores to another retail operator who could, in turn, choose to operate them under one of the Bon-Ton names, which include Carson’s, Younkers, Elder-Beerman, Bergner’s, Boston Store and Herberger’s. A pair of landlords and a private equity firm had considered bidding on the retailer, but opted not to when the auction was held on Monday.​ Great American Group and Tiger Capital Group, which specialize in winding down retail chains, won with a $775.5 million bid, sources say. A portion of the winning bid came in the form of a credit bid — whereby a creditor uses some of what they are owed instead of cash, according to Reuters. ​