The Bon-Ton Stores, Inc.

The Bon-Ton Stores, Inc.
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The "retail apocalypse" rages on in the United States, as The Bon-Ton Stores, Inc. filed for bankruptcy in early February 2018. The Pennsylvania-based department store operator's FRISK® score had flatlined at a "1" - the lowest-possible score on the FRISK® scale - dating all the way back to 2016. The FRISK® score monitors U.S. public company financial distress and bankruptcy risk with 96% accuracy within a 12-month window. 

The Bon-Ton Stores, Inc. FRISK® score
The FRISK® score alerted CreditRiskMonitor subscribers of Bon-Ton's trouble well in advance of their bankruptcy.

In this Bankruptcy Case Study, we evaluate various factors that contributed to the downfall of this large department store chain. Moreover, we also review a timeline of concerning headlines that would have helped a credit professional adjust risk exposure leading up to the bankruptcy. One notable red flag was that Bon-Ton hired a restructuring advisor in September 2017.

About Bankruptcy Case Studies

CreditRiskMonitor Bankruptcy Case Studies provide post-filing analyses of public company bankruptcies. Our case studies educate subscribers about methods they can apply to assess bankruptcy risk using CreditRiskMonitor’s proprietary FRISK® score, robust financial database, and timely news alerts.

In nearly every case, a low FRISK® score gave our subscribers early warning of financial distress within a one-year time horizon. CreditRiskMonitor's proprietary FRISK® score predicts bankruptcy risk at public companies with 96% accuracy. The score is formulated by a number of indicators including stock market capitalization and volatility, financial ratios, bond agency ratings from Moody’s, Fitch and DBRS, and crowdsourced behavioral data from a subscriber group that includes 35% of the Fortune 1000 and thousands more worldwide.

Whether you are new to credit analysis or have decades of experience under your belt, CreditRiskMonitor Bankruptcy Case Studies offer unique insights into the business and financial decline that precedes bankruptcy.