"The holdup is the mall is going under", Kohan said, noting Bon-Ton's bankruptcy. The second lien noteholders' joint bid is for all of the debtors' assets, including real estate. An auction was held Monday.
Bon-Ton filed for bankruptcy in February shortly after it announced the closure of more than 40 stores.
Bankrupt department-store chain Bon-Ton Stores Inc. appears to be heading for liquidation after receiving two bids, both from liquidators, in a court-supervised bankruptcy auction on Monday, as the Central Penn Business Journal explained Tuesday morning.
Bon-Ton operates 13 stores in Wisconsin and employs 2,255 people, including more than 700 at its headquarters in downtown Milwaukee.More news: Armenia's ex-president elected PM in the face of protests
According to Reuters, Bon-Ton had been working with USA mall owners, Namdar Realty Group and Washington Prime Group Inc, to secure a bid to keep a large portion of Bon-Ton locations open. However, that deal fell through after a federal judge barred Bon-Ton from paying the investor group a $500,000 fee as compensation for due diligence costs.
Money raised from the auction will be used to repay what is owed to Bon-Ton's creditors.
Bon-Ton Stores has 260 locations in 24 states, including furniture galleries and clearance centers.
More than $1 million was spent on fixtures for Younkers' Southbridge Mall store, which employed 70 people in 59 departments when it opened. Get twice-daily updates on what the St. Louis business community is talking about.More news: Pence praises Peru's stand on Venezuelan crisis
A message could not be left because Kohan's voicemail box was full.
A directional sign at the Oakdale Mall on March 9, 2017.
The company's stores include Carson's, Younkers, Elder-Beerman, Bergner's, Boston Store, and Herberger's, as well as Bon-Ton. Bon-Ton also has Younkers stores in Eau Claire, Marshfield and Green Bay.More news: The Red Sox Can't Count on David Price