Bon-Ton purchasers to receive $125,000 under receivables claim deal

By Caroline Salls

Pittsburgh, Nov. 8 – Bon-Ton Stores, Inc. requested court approval of a receivables claim settlement with C & J Clark Retail Inc. US, C. & J. Clark America, Inc. US and Clarks Americas, Inc. US and the purchasers of Bon-Ton’s assets, according a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Bon-Ton sold its assets to GA Retail, Inc., Tiger Capital Group, LLC and Wilmington Savings Fund Society, FSB.

Under the asset designation rights detailed in the agency agreement with the buyers, Bon-Ton said the purchasers have the exclusive right to market and sell and/or otherwise designate the purchasers, licenses, transferees and/or assignees of any or all of the assets, including the Bon-Ton debtors’ claim against the Clarks entities.

According to the motion, Clarks sold products to Bon-Ton for sale in its stores and, as a result of those arrangements, owed Bon-Ton $425,000 in receivables arising from vendor allowances and return-to-vendor credits.

Bon-Ton said Clarks has disputed what amount, if any, is owed on the claim.

Under the proposed settlement, Clarks will make a $125,000 payment to the purchasers in exchange for a release of claims.

A hearing is scheduled for Dec. 19.

Bon-Ton, a York, Pa.-based department store operator, filed for bankruptcy on Feb. 4, 2018 under Chapter 11 case number 18-10248.

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