Bon-Ton hurt by interest cost of Saks buy

York , Pa. -- Picking up the tab for its $1.1 billion acquisition of Saks Northern Department Store Group, Bon-Ton Stores Inc. reported a sharply widening second-quarter loss of $19.8 million, compared with a year-before deficit of $1.4 million.

Acting as a drag on the bottom line, interest costs on buyout debt increased more than 8-fold, jumping up by 772.9% to $27.3 million from just $3.6 million last year. In the deal closed in March, Bon Ton picked up 142 department stores in 11 states from Saks, including the Carson Pirie Scott, Younkers, Herberger's and Bergner's nameplates.

Lifted by the buyout, Bon-Ton sales almost tripled, rising by 172.2% to $746.8 million from $274.3 million last year. Bon Ton same-store sales expanded by 4.6%.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT digital edition

See the June 2017 issue of Home & Textiles Today. In this issue, we discuss how U.S, ports are gearing up for the future, and what to expect from second half trade shows. See details!