Bon-Ton files for bankruptcy. What does that mean for Younkers?
Younkers' parent company has filed for bankruptcy. What will happen to Des Moines stores?
Younkers department stores will remain open as its parent company, Bon-Ton Stores Inc., works through bankruptcy with the aim of restructuring the company or selling it.
Bon-Ton has filed for Chapter 11 reorganization in Delaware bankruptcy court.
The company will continue with previously announced plans to close 47 of its 260 stores, including Younkers stores in Cedar Falls and Cedar Rapids.
Bon-Ton has 15 additional Younkers stores in Iowa, including four in the Des Moines metro. It also owns a Herberger's store in Ottumwa. It’s unclear whether more stores will be shuttered as part of the restructuring.
Randy Tennison, general manager of Jordan Creek Town Center, said he had no information how the bankruptcy would affect the Younkers store at the West Des Moines mall.
"We don't think ours is on the closing list," he said.
There are Younkers stores at Valley West Mall in West Des Moines, and at Merle Hay and Southridge malls in Des Moines.
Bon-Ton, which has corporate offices in York, Pa., and Milwaukee, has asked the bankruptcy court for permission to continue operating while it restructures its debt and business operations. It has already gotten about $725 million in bankruptcy financing to maintain business.
Bon-Ton chief executive Bill Tracy said stores will operate normally through the bankruptcy process. Bon-Ton Stores listed $1.59 billion in assets and $1.74 billion in debt as of Oct. 28.
The company operates stores under the names Herberger’s, Boston Store, Carsons, Bergner’s, Bon-Ton, Elder-Beerman and Younkers.
Younkers was founded in 1874 in downtown Des Moines. The store was the first to have electric stairs (escalators) installed and was home to the well-known Younkers Tea Room, which hosted decades of lunches and parties.
The company was sold to Equitable of Iowa Cos. in 1978 and to Saks Inc., then operating as Proffitt’s Inc., in 1996. Saks sold the department store chain to Bon-Ton in 2006.
Reporter Nathan Bomey from USA TODAY contributed to this report.