Struggling retailer Bon-Ton Stores Inc. is seeking more time for one of its subsidiaries to make an interest payment.
Bon-Ton Department Stores, a subsidiary of the chain, informed the Securities and Exchange Commission that it is using a 30-day grace period to delay a $14 million interest payment on a loan. The payment was due on Friday.
The extension will not prevent the company from continuing to borrow under that loan agreement, the company said in its SEC filing.
Bon-Ton, which has corporate offices in York County and Milwaukee, plans to close at least 40 stores by the end of next year. Like many traditional retailers, it has been trying to overcome reduced foot traffic and stiff online competition.
Many large retailers have been closing stores to reduce their retail footprint.
Bon-Ton has 260 stores in 24 states under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers banners. They include nine furniture galleries and four clearance centers.