Bon-Ton Stores has received a signed letter of intent from the investor group in accordance with a bankruptcy court-supervised sale process to be held on 16 April this year.
The investor group is currently in the process of finalising an asset purchase agreement with the department store chain before the auction.
Bon-Ton Stores president and chief executive officer Bill Tracy said: “We are pleased to have received this signed letter of intent and are advancing our discussions with the investor group to complete an asset purchase agreement as we proceed toward the court-supervised auction.
“With the help of our advisors, we will evaluate all qualified bids and are committed to maximising value and pursuing the best path forward for the company and our stakeholders.
“I would like to thank our talented associates, our vendors and our other partners for their ongoing support through our court-supervised restructuring process.”
The auction is intended to get the best offer for the sale and is subject to the bankruptcy court’s approval and other customary conditions.
In February this year, the department store chain and its subsidiaries filed voluntary petitions for a court-supervised financial restructuring at the US Bankruptcy Court for the District of Delaware.
Bon-Ton Stores currently operates 250 stores, including nine furniture galleries in 23 states of the US.
All the stores, e-commerce and mobile platforms of the company operating under the Bon-Ton, Boston Store, Bergner’s, Carson’s, Herberger’s Elder-Beerman and Younkers brands will remain open for customers.