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Herberger’s Could Be Facing The End

By Ellis Codjoe, April 17, 2018

The Herberger’s department store and its other sister establishments around the country look to have, at best, a perilous future.

Back in February, The Bon Ton Stores, Inc. declared for bankruptcy. They also announced the shuttering of 47 of their stores (the Herberger’s at Quincy Place Mall was spared). Bon Ton’s hope was to find a buyer that would be interested in keeping the remaining stores open.

If the interested buyers at the bankruptcy court auction that started on Monday in Wilmington, Delaware are any indication, Bon Ton’s hopes seem to have fallen upon deaf ears. So far, two companies have put in bids to buy Bon Ton and they are both liquidators. According to Reuters, the auction continued Tuesday morning but barring a last minute Hail Mary, the fate of the rest of the stores that are under the umbrella of Bon Ton appears to be sealed.

Once Bon Ton picks a bidder, the buyer (most likely a liquidator) can start selling the inventory, store leases, fixtures and intellectual property.

If Herberger’s does close, the employees will be temporarily protected by the WARN Act which offers protection to workers, their families, and communities by requiring employers to give 60 days advance notice of covered plant closings and covered mass layoffs.

Nevertheless, it appears that Quincy Place Mall will be without a department store and The City of Bridges will see yet another business shut its doors for good.

UPDATE: It was announced on Wednesday that Bon Ton’s 212 remaining stores will be liquidated, including the Ottumwa location. Sources say that the stores will remain open for another 10-12 weeks before closing.

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