Twelve Bon-Ton Stores Inc. locations across the state, including three area Boston Stores, will close down.
On March 30, Bon-Ton announced that it was in active discussions with companies interested in a bid to purchase Bon-Ton.
Paul Jadin, president of the Madison Region Economic Partnership, said the announcement by Bon-Ton is further evidence of the changing environment for brick and mortar retailers.
In addition, a closure in Lancaster could affect 184 people and another one in York would put 332 people out of work.
Reuters reported this week that two major mall owners were working to buy the company out of bankruptcy and keep Bon-Ton alive. An auction pursuant to section 363 of the U.S. Bankruptcy Code is expected to be conducted on April 9.
Bon-Ton said in a statement that the notices were provided to satisfy the requirements of the Worker Adjustment and Retraining Notification Act, which requires companies to give 60 days' notice when they plan mass layoffs or closings. "We remain committed to pursuing the best path forward for the Company and its stakeholders, including Bon-Ton associates". According to media reports, it has provided WARN notices in several other states over the past week. A Dave & Busters and Total Wine & More will open on property owned by Seritage Growth Properties on the south side of West Towne Mall next week while a FLIX brewpub, restaurant and 8-screen movie theater will open later this year at East Towne Mall.
"If you ask the question - what does Bon-Ton stand for?"
No other stores were listed.
Bon-Ton now operates more than 200 stores across 23 states, under the nameplates of Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers.