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Montana Herberger’s locations at risk of closure as parent company is “winding down operations”

Posted at 2:49 PM, Apr 18, 2018
and last updated 2018-04-18 16:49:24-04

MISSOULA – Herberger’s locations throughout the country are in danger of closing after their parent company filed for bankruptcy.

The stores likely to close include the newly-renovated location in Kalispell and at Southgate Mall in Missoula.

Bon-Ton, the parent company of Herberger’s, announced that it is "winding down operations" after declaring bankruptcy.

In a press release, the company said they will move forward in a constructive manner to ensure an orderly wind-down of operations that minimizes the impact on associates, customers, vendors and their communities.

We reached out to Kalispell store manager Gary Evans who said there is speculation about the closure, but corporate offices have not contacted him as to whether the store will be affected by the bankruptcy. 

Evans says they employ about 70 people, and will continue normal operations until notified otherwise.

Southgate Mall manager Tim Winger tells KPAX they have no comment at this time about the possible closure of the Missoula store.

There are several Herberger’s stores in Montana – in Missoula, Kalispell, Butte, Great Falls, Havre and in the Rimrock Mall in Billings. 

MTN News has also received several reports that employees of the Herberger’s store in Great Falls were notified on Tuesday of the likely closure of the store; no date has been announced at this point.

KRTV called the Herberger’s store in Holiday Village Mall on Wednesday morning; when a KRTV reporter asked if the store is closing, the employee hung up.

Here is text from the press release by Bon-Ton:

On April 17, 2018, The Bon-Ton Stores announced the winning bid in an auction for the Company’s assets held pursuant to Section 363 of the U.S. Bankruptcy Code. Bon-Ton will move forward in a constructive manner to ensure an orderly wind-down of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve.

At this time, all of 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.

Bill Tracy, Bon-Ton President and Chief Executive Officer: “While we are disappointed by this outcome and tried very hard to identify bidders interested in operating the business as a going concern, we are committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact of this development on our associates, customers, vendors and the communities we serve. We are incredibly grateful to all of our associates for their dedicated service to Bon-Ton and to our millions of loyal customers who we have had the pleasure to serve as their hometown store for more than 160 years.”

The company says that throughout the court-supervised asset sale process, the stores, e-commerce and mobile platforms under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates will remain open throughout the store closing sales.

Bon-Ton expects to provide more details about the liquidation plans and going out of business sales at its stores following approval of the winning bid by the Bankruptcy Court. 

— Additional reporting by David Sherman and Don Fisher.