Bon-Ton, the parent company of Herberger's department store, has filed for Chapter 11 bankruptcy.
There are several Herberger's stores in Montana, including in Billings, Butte, Great Falls, Havre, Kalispell and Missoula.
The company said the bankruptcy does not necessarily mean any of its stores will close. They explained in a press release that they "expect to continue operating in the normal course."
The company also noted that the "court-supervised process will allow us to continue to pay our associates and meet our obligations to operate without interruption consistent with Chapter 11 and applicable court orders."
The company announced last week that it plans to close 42 stores. None of the locations are in Montana. The nearest affected store that is slated to close is the Herberger's in Chubbuck, Idaho.
A press release from Bon-Ton states:
Bon-Ton has been taking action over the past several months to drive improved performance and strengthen the Company’s financial position, and has now taken another step forward in its efforts by filing voluntary petitions for a court-supervised restructuring under Chapter 11. We are currently engaged in constructive discussions with potential investors and our debtholders on a financial restructuring plan, and the actions we are taking are intended to give us additional time and financial flexibility to evaluate options for our business.
For all of our customers, vendors and talented associates – our Bon-Ton, Boston Store, Bergner’s, Carson’s, Elder-Beerman, Herberger’s and Younkers stores across the United States are open, and our e-commerce and mobile platforms are operating normally. We continue to offer a broad assortment of national and private brand fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings, just as we always have.
We are committed to pursuing the path that we believe is in the best interests of our company and our stakeholders, and we will continue to provide our customers with quality merchandise and an exceptional shopping service as we move through this financial restructuring process.