The parent company of the Bergner's department store chain has filed for Chapter 11 bankruptcy.
The Bon-Ton Stores, Inc. filed voluntary petitions for court-supervised Chapter 11 bankruptcy in U.S. bankruptcy court in the District of Delaware Sunday. Bon-Ton said the bankruptcy may include sale of the company or certain assets.
The company previously announced the closure of 47 stores in 2018, including the Sheridan Village Bergner's outlet in Peoria. Bergner's also has locations at the Shoppes at Grand Prairie in Peoria, as well as Bloomington, Pekin, Galesburg and Peru.
"We are currently engaged in discussions with potential investors and our debtholders on a financial restructuring plan, and the actions we are taking are intended to give us additional time and financial flexibility to evaluate options for our business," said Bill Tracy, President and CEO of Bon-Ton.
Bon-Ton has sought court authority to continue to pay employee wages and benefits, and continue to pay its vendors during the restructuring.