US-based department store chain Bon-Ton Stores has received approval from the US Bankruptcy Court for the District of Delaware for all its first-day motions related to its voluntary petitions for a Chapter 11 financial restructuring.
Earlier this month, Bon-Ton and its subsidiaries have filed voluntary petitions for a court-supervised financial restructuring under Chapter 11 of the US Bankruptcy Code.
Bon-Ton noted that the court’s approval will support its business and enable the company to meet its obligations throughout the financial restructuring process.
Bon-Ton president and chief executive officer Bill Tracy said: “The court’s approvals of our first-day motions are an important step forward in our financial restructuring process that will allow the company to continue operating in the normal course and executing on our key initiatives to drive improved performance.
“We intend to use the additional time and financial flexibility of this court-supervised process to engage with potential investors and our debtholders on a financial restructuring plan, as well as evaluate options for our business.”
The court has also given its approval and authorised Bon-Ton to access up to $725m in debtor-in-possession (DIP) financing from its existing ABL lenders.
The court has also authorised the US-based retailer to continue providing wages, health and other benefits to employees, as well as making payments to vendors in the ordinary course for all goods and services provided on or after the Chapter 11 filing date.
The company further added that it will operate its stores and e-commerce platforms as usual.