Quote from: http://www.zerohedge.com/news/2017-10-16/sears-crashes-after-second-largest-shareholder-resigns-board
For those who may have missed it, late last week, in a scenario right out of the last days of Toys "R" Us, some of Bon-Ton Stores's suppliers reportedly scaled back shipments and asked to be paid sooner in order to protect themselves from potential losses in case the department-store chain unexpectedly filed for bankruptcy, Bloomberg reported on Friday.
The suppliers have insisted on getting paid with letters of credit or cash on delivery, which can be a drain on the company's resources, said the people, who asked not to be named because the matter is private. The demands come just as the chain enters the key holiday-shopping season in the U.S. "We maintain constructive relationships with our vendors," Christine Hojnacki, a spokeswoman for the York, Pennsylvania-based company, said in a statement. "Our team has been working closely with all of our vendors, large and small, as we build inventory ahead of the holiday season."
Unlike Toys, however, Bon-Ton's inevitable default has already been largely priced in, and the news of the supplier strike had a modest impact on Bon-Ton's $350 million of 8% second-lien bonds due 2021 which dropped "ony" 2.5 cents to trade at 32.6 cents on the dollar Friday.
The suppliers have insisted on getting paid with letters of credit or cash on delivery, which can be a drain on the company's resources, said the people, who asked not to be named because the matter is private. The demands come just as the chain enters the key holiday-shopping season in the U.S. "We maintain constructive relationships with our vendors," Christine Hojnacki, a spokeswoman for the York, Pennsylvania-based company, said in a statement. "Our team has been working closely with all of our vendors, large and small, as we build inventory ahead of the holiday season."
Unlike Toys, however, Bon-Ton's inevitable default has already been largely priced in, and the news of the supplier strike had a modest impact on Bon-Ton's $350 million of 8% second-lien bonds due 2021 which dropped "ony" 2.5 cents to trade at 32.6 cents on the dollar Friday.
Read more at http://www.zerohedge.com/news/2017-10-16/sears-crashes-after-second-largest-shareholder-resigns-board.
