With Toys ‘R’ Us having already filed Chapter 11 bankruptcy, in a move that came as a shock to most of its bondholders, suddenly the race between Bon-Ton Stores and Sears Holdings who will file next, is entering its last lap.
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.’
This post was published at Zero Hedge on Oct 16, 2017.