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The winning buyer could try to reorganize the Bon-ton and keep it going, or could liquidate the company to pay off its debts.
According to Reuters, mall owners Namdar Realty Group and Washington Prime Group Inc. are among those trying to buy the company and their bid could offer a way for the retailer to survive.
Bon-Ton sent out a 60-day notice on Friday warning of layoffs that could start as soon as June 5 at the Dayton Mall store as well as for the 330 employees at the Bon-Ton fulfillment center in West Jefferson.
Bon-Ton said in a statement Saturday that it is required under law to provide notification of potential layoffs, but is still evaluating options and hopes the jobs will be preserved after the company’s sale.
“Bon-Ton is in active discussions with an investor group to acquire the Company in a court-supervised sale process,” the retailer stated. “We are encouraged by the interest in Bon-Ton and we hope that jobs will be preserved through a sale process. We remain committed to pursuing the best path forward for the Company and its stakeholders, including Bon-Ton associates.”
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The company’s sale could affect the future of hundreds of local jobs at stores in Piqua, Huber Heights, the Mall at Fairfield Commons in Beavercreek, the Dayton Mall, the Kettering Towne Center.
Elder-Beerman was acquired in 2003 by Bon-Ton, but can trace its roots back to a Dayton dry good store that opened in 1883.
Bon-Ton has been struggling with debt and declining sales as online competitors have grown and shopping habits have shifted away from department stores.
Bon-Ton's share value had dropped to the point where it was delisted from the Nasdaq exchange, and in January said it planned to close at least 40 of its 260 department stores by the end of 2018.
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