MIRA INFORM REPORT

Report No. :	492908
Report Date :	17.02.2018

IDENTIFICATION DETAILS

Name :	THE BON-TON STORES, INC.
Registered Office :	2801 E Market ST York PA 17402-0 York
Country :	United States
Financials (as on) :	28.01.2017
Date of Incorporation :	31.01.1996
Legal Form :	Business Corporation
Line of Business :	Subject is a department store operator. The Company operates through two segments: stores and eCommerce (its Internet Websites). The Company offers a range of brand-name fashion apparel and accessories for women, men and children.
No. of Employees :	23300

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

B

Credit Rating	Explanation	Rating Comments
B	Medium Risk	Business dealings permissible on a regular monitoring basis

Status :	Moderate
Payment Behaviour :	Slow
Litigation :	Exists

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the most technologically powerful economy in the world, with a per capita GDP of $57,300. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at purchasing power parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.

In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, businesses face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.

Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.

The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.

Imported oil accounts for nearly 55% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. Because the US economy is energy-intensive, falling oil prices since 2013 have alleviated many of the problems the earlier increases had created.

The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the US into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009, Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the Federal Government reduced the growth of spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.

Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2014, the direct costs of the wars totaled more than $1.5 trillion, according to US Government figures.

In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million Americans by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on healthcare - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.

In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.

In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short-term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and further reduce them as conditions warranted; the Fed ended the purchases during the summer of 2014. In 2014, the unemployment rate dropped to 6.2%, and continued to fall to 5.5% by mid-2015, the lowest rate of joblessness since before the global recession began; inflation stood at 1.7%, and public debt as a share of GDP continued to decline, following several years of increases. In December 2015, the Fed raised its target for the benchmark federal funds rate by 0.25%, the first increase since the recession began. With US GDP growth below 2%, the Fed opted to raise rates three times since then, and in mid-June 2017, the range for the target rate stood at 1% to 1.25%.

Source : CIA

STATUTORY INFORMATION

Address in the order:

331.West Wisconsin Avenue Milwaukee, WI 53203

United States

/The address in the order corresponds to a branch location

Legal Name:

THE BON-TON STORES, INC.

Trade Name:

THE BON-TON STORES

ID:

2676881

IRS No. 23-2835229

Date Created:

1996

Date Incorporated:

01/31/1996

Legal Address:

2801 E Market ST York PA 17402-0 York

Operative Address:

2801 East Market Street
York, PA 17402
United States

Telephone:

(717) 757-7660

Fax:

(717) 757-7660

Legal Form:

Business Corporation

Email:

ir@bonton.com

Registered in:

PA

Website:

www.thebontonstoresinc.com / www.investors.bonton.com

Contact:

Kathryn Bufano

Staff:

23300

Industry:

Clothing Stores Industry
Cosmetics, Beauty Supply & Perfume Stores Industry
Shoe Stores Industry
Department Stores Industry
Home Furniture & Housewares Stores Industry
Retail Sector Industry

Banks

Credit Arrangements

On March 21, 2011, The Bon-Ton Department Stores, Inc.; The Elder-Beerman Stores Corp.; Carson Pirie Scott II, Inc.; Bon-Ton Distribution, Inc.; and McRIL, LLC, as borrowers entered into the Second Amended Revolving Credit Facility with Bank of America, N.A., as Agent, and certain financial institutions as lenders that amended and restated the Company's prior revolving credit facility.

During 2015, pursuant to the terms of commitment increase letter acknowledgments, the Tranche A revolving commitments under the Second Amended Revolving Credit Facility were increased from $575.0 million to $730.0 million. This brought total revolving commitments under the Second Amended Revolving Credit Facility to $830.0 million.

On January 15, 2016, the Obligors entered into a Consent and Third Amendment to the Second Amended Revolving Credit Facility, which, among other changes, provided for the joinders of the special purpose entities that had previously participated in the Company's mortgage loan facility as Obligors under the Second Amended Revolving Credit Facility. Pursuant to the amendment, all 18 properties owned by the SPEs became real estate in which security interests were granted under the Second Amended Revolving Credit Facility. As a result, borrowing base availability under the revolving credit facility increased to reflect the addition of the properties and interest margins applicable to borrowings increased.

On August 15, 2016, the Obligors entered into a Fourth Amendment to the Second Amended Revolving Credit Facility which, among other changes, increased lender commitments under the A-1 Tranche of the Second Amended Revolving Credit Facility to $150.0 million from the previous $100.0 million. This brought total commitments under the Second Amended Revolving Credit Facility to $880.0 million (including a $150.0 million sub-line for letters of credit and $75.0 million for swing line loans).

The Second Amended Revolving Credit Facility provides that the Borrowers may make requests to increase the commitments up to $950.0 million in the aggregate upon the satisfaction of certain conditions, provided that the lenders are under no obligation to provide any such increases.

All borrowings under the Second Amended Revolving Credit Facility are limited by amounts available pursuant to a borrowing base calculation, which is based on percentages of eligible inventory, real estate and receivables, in each case subject to reductions for applicable reserves. Under the terms of the Second Amended Revolving Credit Facility, the Borrowers are jointly and severally liable for all of the obligations incurred under the Second Amended Revolving Credit Facility and the other loan documents, which obligations are guaranteed on a joint and several basis by the Company, the other Obligors and all future domestic subsidiaries of the Obligors (subject to certain exceptions).

HISTORY

The Bon-Ton was started in 1898, when Max Grumbacher and his father, Samuel, opened S. Grumbacher & Son.
In 1929, the company was incorporated as S. Grumbacher & Son, Inc. In 1931, Max's son, Max Samuel (M.S.), joined the company. When Max the elder died in 1933, his widow, Daisy, and their two sons, M.S. and Richard, continued the business, forming a partnership in 1936.
In 1946, a second Bon-Ton was opened, in Hanover, Pennsylvania. Two years later, the company moved outside Pennsylvania, acquiring Eyerly's in Hagerstown, Maryland, and, in 1957, purchasing McMeen's in Lewistown, Pennsylvania.
In 1961, M.S.'s son, M. Thomas "Tim," entered the business, representing the fourth generation of Grumbachers. During the 1960s, the company opened new Eyerly's and Bon-Ton stores in several Pennsylvania communities and one in West Virginia. They also started a discount chain, Mailman's, and in 1969, retired the McMeen's name. During the 1970s, as the popularity of shopping centers began to grow, The Bon-Ton opened 11 new stores in Pennsylvania and West Virginia.
In July 1994, The Bon-Ton purchased the 127-year-old Adam, Meldrum, and Anderson Company chain based in Buffalo, New York, for $42.6 million. Around the same time, The Bon-Ton also purchased Chappell's of Syracuse, New York and Hess's of Allentown, Pennsylvania. The Bon-Ton initially retained and operated Hess's flagship location until 1996, when it closed after nearly 100 years of continuous operation. The site was eventually demolished. Its current Allentown store, Hess's former south Allentown location, is the anchor of the South Mall. In 1995, The Bon-Ton entered the Rochester, NY market in three former McCurdy's locations, as well as in a former McCurdy's space in Elmira. In the following spring, the company opened a fourth Rochester location in a former Sibley's location. In March 1995, The Bon-Ton closed the landmark downtown Lancaster store. Later that year, they also closed the downtown AM&A's location. 1998's expansion included a new store in Westfield, Massachusetts, making it The Bon-Ton Stores' first entry into the New England area.
In October 2003, The Bon-Ton would expand its reach into Ohio and the lower Midwest with the acquisition of the 69 store Elder-Beerman store chain.
On November 25, 2003, Bon-Ton reported a net loss in the third quarter of $1.7 million, or $0.11 per share, including an asset impairment charge of $0.10 per share.
The Bon-Ton Stores chain doubled in size in November 2005 with the $1.1 billion purchase of the 142 stores of Saks' Northern Department Store Group.
In September 2006, The Bon-Ton purchased four former Parisian stores.
In December 2013, Mike Nemoir, senior vice-president, announced he would retire after four decades in the fashion industry.

PRINCIPAL ACTIVITY

The Bon-Ton Stores, Inc. is a department store operator. The Company operates through two segments: stores and eCommerce (its Internet Websites). The Company offers a range of brand-name fashion apparel and accessories for women, men and children.

Products/Services description:

Brands Women Shoes Handbags
Accessories Handbags & Accessories Jewelry
Watches Jewelry & Watches Beauty
Fragrance Beauty & Fragrance Juniors Men Baby
Kids Baby & Kids Bed
Bath Bed & Bath Home Clearance

Brands:

THE BON-TON STORES

Sales are:

Wholesale

Clients:

Companies

Suppliers:

Natuzzi Spa
Italy

Operations area:

National

The company imports from

Italy

The subject employs

23300 employees

Payments:

Slow

LOCATION

Headquarters :

2801 East Market Street
York, PA 17402
United States

Branches:

The company operates approximately 270 stores in over 26 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates.

BRANCH:

331 West Wisconsin Avenue

Milwaukee, WI 53203

The Company leases a majority of its retail stores under operating leases. Many of the lease agreements contain rent holidays, rent escalation clauses and contingent rent provisions—or some combination of these items. The Company recognizes rent expense in SG&A expense on a straight-line basis over the accounting lease term, which includes lease renewals determined to be reasonably assured. In calculating straight-line rent expense, the Company utilizes an accounting lease term that equals or exceeds the time period used for depreciation. Additionally, the commencement date of the accounting lease term reflects the earlier of the date the Company becomes legally obligated for the rent payments or the date the Company takes possession of the building for initial construction and setup. The excess of rent expense over the actual cash paid is recorded as deferred rent. Leasehold improvement allowances received from landlords and other lease incentives are recorded as deferred rent liabilities and are recognized in SG&A expense on a straight-line basis over the accounting lease term.

Susbsidiaries:

Bonstores Realty One, LLC Delaware

Bonstores Realty Two, LLC Delaware

Bon-Ton Distribution, LLC Illinois

Carson's

Carson Pirie Scott II, Inc. Florida

Bon-Ton, Herberger's, Younkers

McRIL, LLC Virginia

Bergner's, Carson's, Elder-Beerman, Younkers

The Bon-Ton Department Stores, Inc. Pennsylvania

Bon-Ton, Boston Store, Carson's, Elder-Beerman, Herberger's, Younkers

The Bon-Ton Giftco, LLC Virginia

Related Companies:

NA

Competitors:

DILLARD'S INC.
MACY'S, INC.
Boscov's Department Store, LLC

GROUP STRUCTURE AND SUBSIDIARY COMPANIES

Listed at the stock exchange:

YES: The Bon-Ton Stores, Inc. (BONT)

Market Capital:

The aggregate market value of the voting stock held by non-affiliates of the registrant was approximately $22.5 million as of the last business day of the registrant's most recently completed second fiscal quarter.

Shares Outstanding:

As of March 24, 2017, there were 18,847,991 shares of Common Stock, $.01 par value, and 2,951,490 shares of Class A Common Stock, $.01 par value, outstanding.

Shareholders:

Direct Holders
Name	Shares
BRIGADE LEVERAGED CAPITAL STRUCTURES FUND LTD.	1,318,356
SIMON DEBRA KAUFMAN	890,945
BUFANO KATHRYN	390,975
GLEIM MICHAEL L	216,308
BYERS STEPHEN R	200,594
WALSH NANCY A	192,2
TRACY WILLIAM X	137,2
MCCARTY TODD C	136,344
RIGBY PAUL E	81,357
Top Institutional Holders
Holder	Shares
Brigade Capital Management, LLC	1,499,389
Vanguard Group, Inc. (The)	476,641
Teton Advisors, Inc	337,1
Blackrock Inc.	268,352
Gamco Investors Inc	214
SG Americas Securities, LLC	98,207
Joel Isaacson & Co., LLC	72,628
Geode Capital Management, LLC	71,492
Royal Bank of Canada	70,014
Virtu Financial LLC	67,07
Top Mutual Fund Holders
Holder	Shares
EQ Advisors Trust-EQ/GAMCO Small Company Value Portfolio	465
Bridgeway Funds Inc-Ultra Small Company Fund	276,2
Royce Opportunity Fund	247,396
Vanguard Total Stock Market Index Fund	225,465
Teton Westwood Mighty Mites Fd	176,755
Vanguard Extended Market Index Fund	133,855
Vanguard Institutional Index-Inst Total Stock Market Ind	129,935
Bridgeway Funds Inc-Ultra Small Company Market Fund	120,439
Fidelity Extended Market Index Fund	46,249
Fidelity Total Market Index Fund	19,775

Management:

Mr. William X. Tracy Pres, CEO & Director

Mr. Tim Grumbacher Chairman Emeritus & Advisor to the Chief Exec. Officer

Ms. Nancy A. Walsh Chief Financial Officer and Exec. VP Mr. Stephen R. Byers Exec. VP of Stores, Visual and Loss Prevention

Mr. Michael W. Webb Chief Accounting Officer and Sr. VP

FINANCIAL INFORMATION

We attach latest financial statements

LEGAL FILINGS

Government Contracts

No records found

Legal Records

They are party to legal proceedings and claims that arise during the ordinary course of business. In the opinion of management, the ultimate outcome of any such litigation and claims will not have a material adverse effect on the Company's financial condition, results of operations or liquidity.

The Bon-Ton Stores, Inc. v. Attachmate Corporation et al
Plaintiff: The Bon-Ton Stores, Inc.
Defendant: Attachmate Corporation and Micro Focus (US), Inc.
Case Number: 1:2016cv07285
Filed: September 19, 2016
Court: New York Southern District Court
Office: Foley Square Office
County: XX Out of State
Presiding Judge: Alvin K. Hellerstein
Nature of Suit: Copyrights
Cause of Action: 28:2201
Jury Demanded By: Plaintiff

Wirt v. The Bon-Ton Stores, Inc.
Plaintiff: Carrie E. Wirt
Defendant: The Bon-Ton Stores, Inc.
Case Number: 1:2014cv01755
Filed: September 9, 2014
Court: Pennsylvania Middle District Court
Office: Harrisburg Office
County: York
Presiding Judge: John E. Jones
Nature of Suit: Other Statutory Actions
Cause of Action: 15:1681
Jury Demanded By: Plaintiff

The Bon-Ton Stores, Inc. v. Pralle
Plaintiff: The Bon-Ton Stores, Inc.
Defendant: Gary Pralle
Counterclaim_plaintiff: Gary Pralle
Counterclaim_defendant: The Bon-Ton Stores, Inc.
Case Number: 1:2014cv00897
Filed: May 9, 2014
Court: Pennsylvania Middle District Court
Office: Harrisburg Office
County: York
Presiding Judge: Yvette Kane
Nature of Suit: Other Labor Litigation
Cause of Action: 28:1391
Jury Demanded By: Both

Farrauto v The Bon-Ton Dept. Stores, Inc.
Farrauto v The Bon-Ton Dept. Stores, Inc. 2016 NY Slip Op 06609 Decided on October 7, 2016 Appellate Division, Fourth Department Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. This opinion is uncorrected and subject to revision before publication in the Official Reports.

Decided on October 7, 2016 SUPREME COURT OF THE STATE OF NEW YORK Appellate Division, Fourth Judicial Department
PRESENT: WHALEN, P.J., CENTRA, NEMOYER, TROUTMAN, AND SCUDDER, JJ.
853 CA 15-02085

[*1]PATRICIA FARRAUTO AND JOSEPH A. FARRAUTO, AS VOLUNTARY ADMINISTRATOR OF THE ESTATE OF JOSEPH FARRAUTO, DECEASED, PLAINTIFFS-RESPONDENTS,
v
THE BON-TON DEPARTMENT STORES, INC., DEFENDANT-APPELLANT.

Patents

No records found

Trademarks

ELDER-BEERMAN
Retail Department Store Services
Owned by: THE BON-TON DEPARTMENT STORES, INC.
Serial Number: 73495705

SUSQUEHANNA TRAIL OUTFITTERS
MEN'S APPAREL, NAMELY FLANNEL AND WOOL SHIRTS, JACKETS, CORDUROY AND WOOL SLACKS, SWEATERS, SOCKS, HATS, AND LONG UNDERWEAR…
Owned by: THE BON-TON DEPARTMENT STORES, INC.
Serial Number: 73543145

THE BON-TON
retail department store services
Owned by: THE BON-TON DEPARTMENT STORES, INC.
Serial Number: 74078995

THE BON-TON
retail department store services
Owned by: THE BON-TON DEPARTMENT STORES, INC.
Serial Number: 74097054

UCC filings

Debtors
The Bon-Ton Stores, Inc.
601 Memory Lane Suite A York PA 17402
Secured Parties
Logicalis, Inc. 34505 W. Twelve Mile, Suite 210 Farmington Hills MI 48331

Secured Parties
Logicalis, Inc. 34505 W. Twelve Mile, Suite 210 Farmington Hills MI 48331
Debtors
The Bon-Ton Stores, Inc. 601 Memory Lane Suite A York PA 17402

Debtors
The Bon-Ton Stores, Inc.601 Memory Lane Suite A York PA 17402
Secured Parties
Logicalis, Inc. 34505 W. Twelve Mile, Suite 210 Farmington Hills MI 48331

Debtors
The Bon-Ton Stores of Lancaster, Inc. 2801 East Market Street York PA 17402
Secured Parties
Wells Fargo Bank, National Association, as Collateral Agent 625 Marquette Avenue, 11th Floor, MAC N9311-115 Minneapolis MN 55479

SUMMARY

Founded in 1996, THE BON-TON STORES INC is a large-sized organization.

It has 23300 employees operatin approximately 270 stores in over 26 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates, encompassing a total of approximately 25 million square feet.

The company operates in the national area.

THE BON-TON STORES INC is ACTIVE with negative profitability in its last financial statements.

We suggest monitoring the subject for the following 12 months.

RISK INFORMATION

DEBTS

Controlled

PAYMENTS

Slow

CASH FLOW

Normal

STATUS

ACTIVE

INTERVIEW

NAME

Debbie

POSITION

Sales

COMMENTS

The person contacted confirmed name, management, staff, experience, public stock information and stores.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.91
UK Pound	1	INR 90.31
Euro	1	INR 80.17
US Dollar	1	INR 64.39

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VAR
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.