Younkers stores could shutter across Iowa as part of bankruptcy

Younkers stores could shutter across Iowa as part of bankruptcy

The company's stores include Carson's, Younkers, Elder-Beerman, Bergner's, Boston Store, and Herberger's, as well as Bon-Ton.

A report by Reuters Tuesday morning says that only two liquidators were present for Monday's court-supervised bankruptcy auction in Wilmington, Del.

As of late Monday, the auction had not concluded, according to four sources who spoke to Reuters.

Multiple media outlets - including the Des Moines Register and KCRG in Cedar Rapids - are reporting that the pending liquidation of Younkers will lead to the closure of a number of the company's department stores in Iowa.

Now there are 8 Bon-Ton locations here including one at the McKinley Mall, who really can not afford to lose another property.

Two mall owners teamed up to make a bid to keep the stores going.

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One liquidator group estimated their initial bid was worth about $650 million, according to a creditor representative who spoke to Reuters.

But U.S. Bankruptcy Judge Mary Walrath said last week she would not approve that payment, noting Bon-Ton was not paying the fees of any other bidders and that the offer from the investor group did not amount to a qualified bid. There is also a Younkers store in Duluth.

The group signed a letter of intent to purchase Bon-Ton at the bankruptcy auction, outlining the terms of a deal that would have kept the current management team in place and the business operating.

Sports Authority Holdings Inc, apparel chain The Limited Stores LLC and electronics seller hhgregg Inc are among the chains that have gone out of business recently.

Bon-Ton is a regional chain of almost 200 stores.

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