The Bon-Ton
| Company type | Private (formerly publicly traded) |
|---|---|
| Industry | Retail (Department stores) |
| Predecessor | S. Grumbacher & Son |
| Founded | January 1, 1898 in York, Pennsylvania, United States |
| Founder | Samuel Grumbacher, Max Grumbacher |
| Defunct | April 2018 (physical stores liquidated) |
| Fate | Bankruptcy and liquidation; brand rights acquired and relaunched as online retailer |
| Successor | BrandX.com (online retail) |
| Headquarters | New York City , United States |
Area served | Western New York, Pennsylvania, New Jersey, West Virginia, Maryland, Midwest (historically); online retail (currently) |
Key people | Tim Grumbacher (former CEO and chairman), Debra Simon (chairwoman from 2017) |
| Products | Apparel, home furnishings, televisions, kitchen appliances, cosmetics, fragrances |
Number of employees | Not specified |
| Parent | BrandX.com (since 2021) |
| Website | www |
Bonton Holdings Inc., known simply as Bonton (), was a U.S.-based department store chain established in 1898 by brothers Samuel and Max Grumbacher. With its main office situated in New York City, the business primarily served customers in Western New York, Pennsylvania, New Jersey, West Virginia, Maryland, and parts of the Midwest. Following a bankruptcy filing in February 2018, BonTon’s brand rights were acquired by CSC Generation, which later transferred ownership to BrandX.com in 2021. Currently, BrandX manages BonTon as an online retail platform and holds the trademarks of BonTon’s former subsidiaries including Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's, and Younkers.
19th century
Originally launched as S. Grumbacher & Son, the company started as a millinery and dry goods retailer founded by Samuel and Max Grumbacher in York, Pennsylvania. Early expansion efforts positioned Bon-Ton as a regional player with multiple outlets across Pennsylvania and New Jersey.
20th century
By 1902, several stores operated under the "Bon-Ton Millinery" banner throughout Pennsylvania and New Jersey. The "Bon-Ton" name was chosen to appeal to a more upscale clientele. The business incorporated in 1929 as S. Grumbacher & Son, Inc., maintaining family leadership over successive generations.
Following World War II, Bon-Ton pursued growth through acquisitions such as Maryland’s Eyerly's in 1948 and Pennsylvania’s McMeen's in 1957. This approach combined opening new stores with acquiring existing retailers in neighboring markets. During the 1960s and 1970s, the company further extended its footprint within Pennsylvania and West Virginia, aligning with the retail shift toward shopping center locations.
In the 1980s, amid industry consolidation trends, Bon-Ton expanded by acquiring L.S. Good and its Fowler’s stores, introducing the Maxwell's division, and purchasing the Pomeroy's chain in 1987—thereby entering seven additional Pennsylvania markets. By 1985, under CEO Tim Grumbacher—representing the fourth generation of family leadership—Bon-Ton managed 18 stores across four states.
The early 1990s saw continued acquisition activity including J.W. Rhodes in 1991 and Watt & Shand stores in Lancaster in 1992, alongside entry into New York markets with a location at Wilton Mall in 1993. The late 1980s purchase of Mailman's in York further solidified regional market share.
A major transaction occurred in July 1994 when Bon-Ton acquired Adam, Meldrum & Anderson Company (AM&A's) for $42.6 million, rebranding all locations under the Bon-Ton name. Additional purchases included Chappell's of Syracuse and Hess's of Allentown; however, Hess’s flagship store was closed by 1996 due to changing retail dynamics.
Mid-1990s expansion into Rochester utilized former McCurdy’s and Sibley’s/Kaufmann’s sites. During this period, Bon-Ton also shuttered underperforming flagship stores downtown in Lancaster and Buffalo. In 1998, the company ventured into New England by opening a store in Westfield, Massachusetts—their initial presence in that region.
This timeline illustrates a strategy centered on regional market consolidation through acquisition-driven growth combined with selective new store openings—key elements that defined its competitive position until restructuring efforts commenced following bankruptcy proceedings in 2018.
21st century
In October 2003, The Bon-Ton entered the Ohio and lower Midwest markets by acquiring the 68-store Elder-Beerman chain. After a bid to privatize, Elder-Beerman shareholders received a cash payout for their outstanding shares.
On November 25, 2003, Bon-Ton announced a third-quarter net loss of $1.7 million, equating to $0.11 per share, which included an asset impairment expense.
Two years later, in November 2005, Bon-Ton significantly expanded its footprint by acquiring Saks' Northern Department Store Group for $1.1 billion. While the corporate headquarters remained in York, Pennsylvania, merchandising operations were relocated to Milwaukee, Wisconsin. This acquisition brought Carson Pirie Scott (later Carson's), Bergner's, Boston Store, Herberger's, and Younkers under Bon-Ton's umbrella without altering their store names.
In September 2006, Bon-Ton purchased four existing Parisian stores and one additional location under construction from Belk, situated in Michigan, Indiana, and Ohio. Stores in Indiana and Ohio were rebranded as Carson Pirie Scott and Elder-Beerman respectively; Michigan locations retained the Parisian brand until 2013 when they transitioned to Carson's.
Between 2011 and 2017, Bon-Ton did not report any net profits and faced considerable turnover among its executive leadership. In December 2013, Mike Nemoir, senior vice president with four decades of retail experience, retired. In May 2017, Tim Grumbacher, a long-serving board member and former CEO, stepped down as chairman after more than 25 years; his wife Debra Simon took over the role.
In the fall of 2016, Bon-Ton introduced "Close to Home" sections in 45 stores featuring merchandise sourced locally from designers and entrepreneurs. By February 2017, this initiative had grown to at least 100 stores spanning 25 states.
Bankruptcy and liquidation
On December 18, 2017, Bon-Ton Stores disclosed it was unable to make a $14 million interest payment due on December 15 following a 6% sales decline in both the second and third quarters. The company entered a grace period with lenders while Standard & Poor’s downgraded its rating to selective default, anticipating either an out-of-court restructuring or bankruptcy filing.
In January 2018, Bon-Ton began implementing a store rationalization plan by closing 42 locations across 14 states to streamline its physical retail presence.
By February 2018, the company filed for Chapter 11 bankruptcy protection with the intention of resolving its long-term debt issues.
In April 2018, Washington Prime Group and Namdar Realty Group submitted a significant purchase offer. However, after a judge disallowed Bon-Ton's proposed $500,000 "work fee," approval was granted to a rival $775.5 million bid from The Great American Group LLC and Tiger Capital Group LLC—firms that specialize in liquidation. Consequently, Bon-Ton's bankruptcy case was converted from Chapter 11 to Chapter 7, leading to the closure and liquidation of all 267 stores along with asset sales.
By August 30, 2018, Great American Group confirmed that all Pennsylvania outlets had been shuttered and vacated.
Relaunch
On August 31, 2018, The Bon-Ton Stores' websites displayed "Stay Tuned" messages indicating an upcoming relaunch as the company underwent acquisition. On September 6, 2018, CSC Generation—a Merrillville, Indiana-based holding company supported by both Chinese and American venture capital firms and owner of DirectBuy—agreed to acquire Bon-Ton for $900,000. The purchase included rights to branding, trademarks, websites, plus a customer database containing approximately 24.5 million records with about 5.6 million email addresses. CSC Generation intended to emphasize digital retail while reopening select physical stores; however, only one location in Evergreen Park, Illinois reopened before closing again in October 2020 due to COVID-19 disruptions. Separately, L'Oréal USA acquired Bon-Ton's cosmetics and fragrance customer data for $312,900.
On September 10, 2018, a federal bankruptcy judge approved the sale to CSC Generation. The new ownership relaunched all department store brands on September 14 with an expanded product range including apparel, home furnishings, televisions, and major kitchen appliances.
In early 2021, CSC Generation sold Bon-Ton to BrandX.com, Inc., based in New York. According to a May 2022 Women's Wear Daily article, BrandX plans to revive Bon-Ton’s presence by opening a brick-and-mortar Carson's store in Illinois. In September 2022, Bon-Ton became BrandX.com’s inaugural brand relaunch.
See also
External links
- Articles with short description
- 1898 establishments in Pennsylvania
- American companies established in 1898
- Companies that filed for Chapter 11 bankruptcy in 2018
- Companies that filed for Chapter 7 bankruptcy in 2018
- Defunct department stores based in Indiana
- Defunct department stores in Pennsylvania
- Economy of the Midwestern United States
- Hess's
- Merrillville, Indiana
- Online retailers of the United States
- Privately held companies based in Indiana
- Retail companies established in 1898
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- Companies formerly listed on the Nasdaq
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