Retail apocalypse: another department store network closes all stores in the US

The network of department stores Bon-Ton has become another victim of the retail crisis in the United States.

Photo: Flickr

Bon-Ton Stores Inc. announced the closure of all 256 outlets of its network, which includes stores Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers, writes CNN.

The bankruptcy court approved the liquidation of 18 stores in April.

Department Store Network Bon-ton stores was founded in 1854 year, the company filed for bankruptcy in February 2018, but could not find a buyer who could cover the debts of the organization.

Bon-Ton has stores in 23 US states that employ around 23 000 employees.

In a statement about bankruptcy, the company cited the growth of online commerce and a decrease in physical stores as the main reason for its failure.

In addition, the company noted that they are losing a lot due to the activities of their competitors: JCPenney, Kohl's and Macy'swho launched a more aggressive struggle for buyers.

Bon-ton not alone - while online retailer Amazon flourishing and even opening physical stores, some giants of traditional trade face financial difficulties and are forced to close part of the stores or declare bankruptcy. Among bankrupt - Toys "R" Us and Sears, With Macy's closed a significant part of its stores in 2017, closures will continue in 2018.

Rating Company Moody's reported that retail sector defaults hit a record high during the first quarter of 2018. Most of their bankruptcy is to blame for the growth of e-commerce.

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