Bon-Ton Holdings Inc. is an American online retailer and former
department store
A department store is a retail establishment offering a wide range of consumer goods in different areas of the store, each area ("department") specializing in a product category. In modern major cities, the department store made a dramatic app ...
chain founded in 1898. After rapid expansion in the 1990s and early 2000s, the original company had financial troubles, ultimately filing for bankruptcy in 2018 before being sold and liquidated. In September 2018, CSC Generation began operating as an online retailer headquartered in
Merrillville, Indiana
Merrillville is a town in Ross Township, Lake County, Indiana, United States. The population was 35,246 at the 2010 census. Merrillville is in east-central Lake County, in the Chicago metropolitan area. On January 1, 2015, Merrillville became the ...
, with plans to open brick and mortar locations. In early 2021, CSC Generation sold all the acquired assets of Bon-Ton to New York-based BrandX.com, Inc in a private sale and included other brands such as
Bergner's
P.A. Bergner & Co. (also known as Bergner's) was an upscale Midwestern department store established in 1889. The chain is now an online retailer operated by BrandX.com, Inc. The flagship store was located in Peoria, Illinois at The Shoppes at Gr ...
,
Boston Store,
Carson's
Carson Pirie Scott & Co. (also known as Carson's) is an American department store that was founded in 1854, which grew to over 50 locations, primarily in the Midwestern United States. Sold to the holding company of Bon-Ton in 2006, but still ope ...
,
Elder-Beerman
The Elder-Beerman Stores Corp., commonly known as Elder-Beerman, was an American chain of department stores founded in 1883 and whose last stores closed in 2018. The chain, based primarily in the Midwestern United States, was composed of 31 stor ...
,
Herberger's
G. R. Herberger Inc. is a department store chain founded in 1927 with locations throughout the Midwestern United States. The chain was sold in the late 1990s amid growing consolidation in the department store industry, while continuing to operate ...
, and
Younkers
Younkers Inc. is an American online retailer and former department store chain founded as a family-run dry goods business in 1856 in Keokuk, Iowa. The retailer had evolved over more than 150 years to include a presence in locations throughout Iowa ...
.
History
Beginnings
The Bon-Ton was started in 1898, when Max Grumbacher and his father, Samuel, opened S. Grumbacher & Son, a one-room
millinery
Hat-making or millinery is the design, manufacture and sale of hats and other headwear. A person engaged in this trade is called a milliner or hatter.
Historically, milliners, typically women shopkeepers, produced or imported an inventory of g ...
and dry goods store on Market Street in
York, Pennsylvania
York ( Pennsylvania Dutch: ''Yarrick''), known as the White Rose City (after the symbol of the House of York), is the county seat of York County, Pennsylvania, United States. It is located in the south-central region of the state. The populati ...
.
As reported in the ''Carlisle Evening Sentinel'' on October 31, 1902, the store chain had two additional locations under the name "Bon-Ton Millinery" in Trenton, New Jersey, as well as in the following Pennsylvania locations:
Carlisle
Carlisle ( , ; from xcb, Caer Luel) is a city that lies within the Northern England, Northern English county of Cumbria, south of the Anglo-Scottish border, Scottish border at the confluence of the rivers River Eden, Cumbria, Eden, River C ...
,
Lancaster,
Lebanon
Lebanon ( , ar, لُبْنَان, translit=lubnān, ), officially the Republic of Lebanon () or the Lebanese Republic, is a country in Western Asia. It is located between Syria to the north and east and Israel to the south, while Cyprus li ...
,
Altoona, and East
Liverpool
Liverpool is a city and metropolitan borough in Merseyside, England. With a population of in 2019, it is the 10th largest English district by population and its metropolitan area is the fifth largest in the United Kingdom, with a popul ...
. The name "Bon-Ton" was drawn from
a British term connoting the "elite" or "high society".
Through
World War I
World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
and the Roaring Twenties, the Grumbacher's store chain grew bigger and, in 1929, the company was incorporated as S. Grumbacher & Son, Inc. In 1931, Max's son, Max Samuel (M.S.), joined the company. When Max the elder died in 1933, his widow, Daisy, and their two sons, M.S. and Richard, continued the business, forming a partnership in 1936.
The Bon-Ton was a popular store destination on the classic radio show ''
Fibber McGee and Molly
''Fibber McGee and Molly'' (1935–1959) was a longtime highly popular husband-and-wife team radio comedy program.
The situation comedy was a staple of the NBC Red Network from 1936 on, after originating on NBC Blue in 1935. One of the most p ...
'', which aired from 1935 to 1959.
Following
World War II
World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
, the Grumbacher family decided to expand operations even further. In 1946, an additional Bon-Ton was opened, in
Hanover, Pennsylvania
Hanover is a borough in York County, Pennsylvania, southwest of York and north-northwest of Baltimore, Maryland and is north of the Mason-Dixon line. The town is situated in a productive agricultural region. The population was 16,429 at the ...
. Two years later, the company moved outside Pennsylvania, acquiring Eyerly's in
Hagerstown, Maryland
Hagerstown is a city in Washington County, Maryland,
United States and the county seat of Washington County. The population of Hagerstown city proper at the 2020 census was 43,527, and the population of the Hagerstown metropolitan area (exten ...
, and, in 1957, purchasing McMeen's in
Lewistown, Pennsylvania
Lewistown is a borough in and the county seat of Mifflin County, Pennsylvania, United States. It is the principal city of the '' Lewistown, PA Micropolitan Statistical Area'', which encompasses all of Mifflin County. It lies along the Juniata Riv ...
. These early moves set The Bon-Ton's policy of growing into adjacent areas by opening new stores and acquiring existing businesses.
Expansion
During the next three decades, The Bon-Ton Stores continued to expand. In 1961, M.S.'s son, M. Thomas "Tim", entered the business, representing the fourth generation of Grumbachers. During the 1960s, the company opened new Eyerly's and Bon-Ton stores in several Pennsylvania communities and one in
West Virginia
West Virginia is a state in the Appalachian, Mid-Atlantic and Southeastern regions of the United States.The Census Bureau and the Association of American Geographers classify West Virginia as part of the Southern United States while the Bur ...
. In 1969, retired the McMeen's name. During the 1970s, as the popularity of shopping centers began to grow, The Bon-Ton opened 11 new stores in Pennsylvania and West Virginia.
The 1980s formed a period of rapid consolidation in the retail department store industry as major chains bought their competitors. The Bon-Ton Stores began the decade by opening more stores, establishing a new division,
Maxwell's
Maxwell's, last known as Maxwell's Tavern, was a bar/restaurant and music club in Hoboken, New Jersey. Over several decades the venue attracted a wide variety of acts looking for a change from the New York City concert spaces across the river. Ma ...
, and acquiring L S Good (including its
Fowler's department stores). When Tim Grumbacher was made CEO in 1985, the company operated 18 stores in four states. Two years later, the company made a major move, buying the 11-store Pomeroy's chain from
Allied Department Stores. That purchase made it possible for the company to move into seven new markets in Pennsylvania. In 1991, The Bon-Ton acquired J.W. Rhodes in Ithaca, New York. The Bon-Ton entered the Lancaster, Pennsylvania, market in 1992 with the acquisition of two
Watt & Shand
Watt & Shand was a department store that operated in Lancaster, Pennsylvania from 1879 to 1992.
History
Mercantile apprentices Peter T. Watt, 28, Gilbert Thompson, 32, and James Shand, 29, of Hartford, Conn., opened the predecessor of Watt & Shan ...
locations in downtown Lancaster and
Park City Center
Park City Center is a shopping mall located in Lancaster, Pennsylvania, and is the largest enclosed shopping center in Lancaster County. It is situated at the intersection of U.S. Route 30 and Harrisburg Pike. The mall has over 170 stores and th ...
. The company continued to expand its New York presence in 1993 with a store in the Wilton Mall in Saratoga Springs in the former
Addis & Dey's space. In the late 1980s, the company also acquired a York, Pennsylvania family-operated department store, Mailman's from Stanley Mailman, which converted to a Bon-Ton location.
In July 1994, The Bon-Ton purchased the 127-year-old
Adam, Meldrum, and Anderson Company chain based in
Buffalo, New York
Buffalo is the second-largest city in the U.S. state of New York (behind only New York City) and the seat of Erie County. It is at the eastern end of Lake Erie, at the head of the Niagara River, and is across the Canadian border from South ...
, for $42.6 million converting all locations to The Bon Ton. Around the same time, The Bon-Ton also purchased
Chappell's
Chappell's was a family-owned department store chain based in Syracuse, New York. It opened in 1896 and remained in business until 1994. At its peak, it operated ten stores in the Syracuse area, Cortland, Watertown and Massena. In no particular ...
of
Syracuse, New York
Syracuse ( ) is a City (New York), city in and the county seat of Onondaga County, New York, Onondaga County, New York, United States. It is the fifth-most populous city in the state of New York following New York City, Buffalo, New York, Buffa ...
, and
Hess's
Hess's was a department store chain based in Allentown, Pennsylvania. The company started in 1897 with one store, originally known as Hess Brothers, and grew to nearly 80 stores by its peak in the late 1980s. The chain's stores were closed or sold ...
of
Allentown, Pennsylvania
Allentown (Pennsylvania Dutch language, Pennsylvania Dutch: ''Allenschteddel'', ''Allenschtadt'', or ''Ellsdaun'') is a city in Lehigh County, Pennsylvania, Lehigh County, Pennsylvania. The city has a population of 125,845 as of the 2020 United ...
. The Bon-Ton initially retained and operated Hess's flagship location until 1996, when it closed after nearly 100 years of continuous operation. The site was eventually demolished. Its Allentown store, Hess's former south Allentown location, was the anchor of the
South Mall
The South Mall is an enclosed shopping mall located on Lehigh Street south of Interstate 78 exit 57 near Allentown's southern border with Salisbury Township and Emmaus in the Lehigh Valley region of eastern Pennsylvania.
History 1970s and 19 ...
. In 1995, The Bon-Ton entered the Rochester, New York market in three former
McCurdy's
McCurdy's (formally McCurdy and Company) was a Rochester, New York-based department store. Founded in 1901, the company was acquired by May Department Stores in 1994, but as a result of an antitrust settlement due to both McCurdy's and May's K ...
locations, as well as in a former
McCurdy's
McCurdy's (formally McCurdy and Company) was a Rochester, New York-based department store. Founded in 1901, the company was acquired by May Department Stores in 1994, but as a result of an antitrust settlement due to both McCurdy's and May's K ...
space (originally Iszard's) in Elmira. In the following spring, the company opened a fourth Rochester location in a former
Sibley's
Sibley, Lindsay & Curr Company, known informally as Sibley's, was a Rochester, New York-based department store chain with stores located exclusively in the state of New York. Its flagship store, at 228 East Main Street in downtown Rochester, also ...
/
Kaufmann's
Kaufmann's was a department store that originated in Pittsburgh, Pennsylvania.
Summary
The store was owned in the early 20th century by Edgar J. Kaufmann, patron of the famous Fallingwater house. In the post-war years, the store became a regi ...
location. In March 1995, The Bon-Ton closed the landmark downtown Lancaster store. Later that year, they also closed the downtown
AM&A's
Adam, Meldrum & Anderson Company (AM&A's) was a chain of department stores based in Buffalo, New York. It was an institution to generations of shoppers in the Buffalo area. The company remained family owned until its sale to The Bon-Ton in 1995. ...
location. 1998's expansion included a new store in
Westfield, Massachusetts
Westfield is a city in Hampden County, Massachusetts, Hampden County, in the Pioneer Valley of western Massachusetts, United States. Westfield was first settled by Europeans in 1660. It is part of the Springfield, Massachusetts Springfield metrop ...
, making it The Bon-Ton Stores' first entry into the New England area.
Operations in 2000s
![South Mall, Allentown PA 02](https://upload.wikimedia.org/wikipedia/commons/7/7c/South_Mall%2C_Allentown_PA_02.JPG)
In October 2003, The Bon-Ton expanded its reach into Ohio and the lower Midwest with the acquisition of the 69-store
Elder-Beerman
The Elder-Beerman Stores Corp., commonly known as Elder-Beerman, was an American chain of department stores founded in 1883 and whose last stores closed in 2018. The chain, based primarily in the Midwestern United States, was composed of 31 stor ...
store chain. Following an attempt to convert to a privately held company, Elder-Beerman was offered more cash for its outstanding stock as part of the buyout. The chain operated as a separate banner until the company's demise in 2018.
On November 25, 2003, Bon-Ton reported a net loss in the third quarter of $1.7 million, or $0.11 per share, including an asset impairment charge of $0.10 per share.
The Bon-Ton Stores chain doubled in size in November 2005 with the $1.1 billion purchase of the 142 stores of Saks' Northern Department Store Group, headquartered in downtown
Milwaukee
Milwaukee ( ), officially the City of Milwaukee, is both the most populous and most densely populated city in the U.S. state of Wisconsin and the county seat of Milwaukee County. With a population of 577,222 at the 2020 census, Milwaukee is ...
,
Wisconsin
Wisconsin () is a state in the upper Midwestern United States. Wisconsin is the 25th-largest state by total area and the 20th-most populous. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake M ...
. Corporate headquarters remained in York, Pennsylvania, but merchandising headquarters were relocated to Milwaukee. As with the Elder-Beerman acquisition, no store names were changed in the transaction. The newly acquired store group included Carson Pirie Scott (later branded as
Carson's
Carson Pirie Scott & Co. (also known as Carson's) is an American department store that was founded in 1854, which grew to over 50 locations, primarily in the Midwestern United States. Sold to the holding company of Bon-Ton in 2006, but still ope ...
),
Bergner's
P.A. Bergner & Co. (also known as Bergner's) was an upscale Midwestern department store established in 1889. The chain is now an online retailer operated by BrandX.com, Inc. The flagship store was located in Peoria, Illinois at The Shoppes at Gr ...
,
Boston Store,
Herberger's
G. R. Herberger Inc. is a department store chain founded in 1927 with locations throughout the Midwestern United States. The chain was sold in the late 1990s amid growing consolidation in the department store industry, while continuing to operate ...
, and
Younkers
Younkers Inc. is an American online retailer and former department store chain founded as a family-run dry goods business in 1856 in Keokuk, Iowa. The retailer had evolved over more than 150 years to include a presence in locations throughout Iowa ...
.
In September 2006, The Bon-Ton purchased four former
Parisian stores (plus one under construction) from
Belk
Belk, Inc. is an American department store chain founded in 1888 by William Henry Belk in Monroe, North Carolina, with nearly 300 locations in 16 states. Belk stores and Belk.com offer apparel, shoes, accessories, cosmetics, home furnishings, a ...
(which had just purchased the chain); the stores were located in Michigan, Indiana, and Ohio (outside Belk's traditional operating territory). The stores in Indiana and Ohio were immediately rebranded to
Carson Pirie Scott
Carson Pirie Scott & Co. (also known as Carson's) is an American department store that was founded in 1854, which grew to over 50 locations, primarily in the Midwestern United States. Sold to the holding company of Bon-Ton in 2006, but still op ...
and
Elder-Beerman
The Elder-Beerman Stores Corp., commonly known as Elder-Beerman, was an American chain of department stores founded in 1883 and whose last stores closed in 2018. The chain, based primarily in the Midwestern United States, was composed of 31 stor ...
, respectively. The three Michigan stores maintained the
Parisian name until 2013, when they were rebranded to
Carson's
Carson Pirie Scott & Co. (also known as Carson's) is an American department store that was founded in 1854, which grew to over 50 locations, primarily in the Midwestern United States. Sold to the holding company of Bon-Ton in 2006, but still ope ...
.
Final years
The Bon-Ton's final years were marked with a string of financial losses and executive turnover.
From 2011 through 2017, the company did not post an annual profit. From 2011 through the company's bankruptcy, it had four CEOs and three CFOs. In December 2013, Mike Nemoir, senior vice-president, announced he would retire after four decades in the fashion industry at Bon-Ton and its predecessor companies on March 28, 2014.
In May 2017, Tim Grumbacher retired after 50 years on the board of directors, and more than 25 as its chairman. He had also been Bon-Ton's CEO from 1985 to 1995 and held other senior management positions. Grumbacher's wife and fellow board member, Debra Simon, was elected to succeed him.
In fall 2016, Bon-Ton launched in-store and online "Close to Home" shops in 45 of its stores, selling locally sourced and locally themed products. In February 2017, the chain announced that it would expand these shops to at least 100 stores in 25 states and would partner with local designers, artisans and entrepreneurs in each market interested in selling their products in these shops.
The company's financial situation worsened rapidly in 2017, with same-store sales falling over 6% in both the second and third
quarters. On May 5, 2017, Bon-Ton Stores was informed its common stock was no longer in compliance with
NASDAQ
The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...
listing requirements, and the stock was de-listed from the exchange on December 6 and became listed in
OTC Pink
OTC Markets Group (previously known as Pink Sheets) is an American financial market providing price and liquidity information for almost 10,000 over-the-counter (OTC) securities. The group has its headquarters in New York City. OTC-traded sec ...
.
In November 2017, the company announced a store closure program, stating 40 to 45 stores would close after the holiday season.
Bankruptcy and liquidation
During the first quarter of 2018, The Bon-Ton announced it would be closing 42 stores in 14 states, in addition to five stores previously announced. However, it was not enough to save the company from its large debt.
On December 18, 2017, Bon-Ton Stores revealed it had failed to pay $14 million in interest that had been due December 15. The company entered into a grace period with its lenders. Analysis from
Standard & Poor's
S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is con ...
downgraded the company into selective default, and predicted a bankruptcy or out-of-court restructuring at the conclusion of the grace period.
In February 2018, The Bon-Ton Stores Inc. filed for
Chapter 11 bankruptcy
Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, whe ...
protection. The company had not made an annual profit since 2010.
On April 9, 2018, it was announced that
Washington Prime Group
Washington Prime Group Inc. is an American real estate investment trust that invests in shopping centers. The company is organized in Indiana with its headquarters in Columbus, Ohio. From January 2015 to September 2016, the company had the name WP ...
and
Namdar Realty Group
Namdar Realty Group is an American shopping mall investment company based in Great Neck, New York. They primarily purchase shopping malls with partner Mason Asset Management. Namdar and Mason are both family owned, and as of 2021, own over 400 p ...
would bid to save Bon-Ton from bankruptcy. On April 17, 2018, however, the plans fell through because the court ruled the company would not be able to pay a $500,000 "work fee".
On April 17, 2018, The Bon-Ton announced it would liquidate all 267 stores after The Great American Group LLC and Tiger Capitol Group LLC bid $775.5 million for the retailer and after converting its Chapter 11 bankruptcy to
Chapter 7. They acquired the inventory and other assets of the company and sold it all off. On August 30, Great America Group said all Pennsylvania locations were officially closed, and buildings would be vacated by the next day.
Revival and relaunch
On August 31, 2018, The Bon-Ton Stores, Inc.-owned retail websites were updated with "Stay Tuned" messages, indicating that the company's respective brands would come back in some form; the liquidator stated that the company's
intellectual property
Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, cop ...
was being sold. On September 6, 2018, it was reported that the purchaser was
Merrillville, Indiana
Merrillville is a town in Ross Township, Lake County, Indiana, United States. The population was 35,246 at the 2010 census. Merrillville is in east-central Lake County, in the Chicago metropolitan area. On January 1, 2015, Merrillville became the ...
-based
CSC Generation CSC, Csc or CSc may refer to:
Awards
* Conspicuous Service Cross (disambiguation)
** Conspicuous Service Cross (Australia)
** Conspicuous Service Cross (New York)
** Conspicuous Service Cross (United Kingdom)
Science and industry
* Cancer s ...
, a
holding company
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
backed by Chinese and American
venture capital
Venture capital (often abbreviated as VC) is a form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential or which ha ...
firms, which owns the membership buying service
DirectBuy. CSC Generation agreed to pay $900,000 for Bon-Ton's database of 24.5 million unique customer records and 5.6 million email addresses, as well as its trademarks and websites. While the retailer would become a smaller
e-commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products on online services or over the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain manageme ...
business focused on its website, there were plans to reopen some physical stores in several states. However, only one such store was re-opened (in
Evergreen Park, Illinois
Evergreen Park is a village in Cook County, Illinois, United States. In 2020, the population was 19,943.
History
As early as 1828, a German farming family had settled in the area of what is now Evergreen Park. In the succeeding decades, other Ge ...
), and it closed in 2020.
Also, beauty products company
L'Oréal
L'Oréal S.A. () is a French personal care company headquartered in Clichy, Hauts-de-Seine with a registered office in Paris. It is the world's largest cosmetics company and has developed activities in the field concentrating on hair color, sk ...
USA successfully bid $312,900 for data on Bon-Ton's cosmetics and fragrance customers. On September 10, 2018, the federal bankruptcy judge approved the sale to CSC Generation; on September 14, the new owner relaunched websites for all of its department store brands. In addition to apparel and home goods, the websites also sold televisions and major kitchen appliances.
Subsequently, in early 2021, CSC Generation sold all the acquired assets of Bon-Ton to New York-based BrandX.com, Inc in a private sale. According to a May 2022 article on ''
WWD'', BrandX will relaunch Bon-Ton online, and open a physical Carson's store in Illinois.
In September 2022 The Bon-Ton relaunched online as the first brand relaunch by BrandX.com
See also
*
Retail apocalypse
A retail apocalypse is the closing of numerous brick-and-mortar retail stores, especially those of large chains worldwide. It began around 2010, and was severely exacerbated by the mandatory closures during the COVID-19 pandemic.
In 2017, over ...
*
List of retailers affected by the retail apocalypse
The following retailers have all either closed or announced plans to close large numbers of retail locations, since 2010, during a time period labelled a "retail apocalypse" by media, accelerated by both the increase in online shopping and then by ...
References
External links
Official website
{{DEFAULTSORT:Bon-Ton, The
1898 establishments in Pennsylvania
American companies established in 1898
Companies that filed for Chapter 11 bankruptcy in 2018
Companies that have filed for Chapter 7 bankruptcy
Defunct department stores based in Indiana
Defunct department stores based in Pennsylvania
Economy of the Midwestern United States
Merrillville, Indiana
Online retailers of the United States
Privately held companies based in Indiana
Retail companies established in 1898
Re-established companies