Fashion retailer Bon-Ton to shut Walden Galleria store
17 Nov '05
2 min read
Leading quality fashion department store Bon-Ton Stores Inc announced it would close its Walden Galleria store located in Buffalo, New York effective January 28, 2006.
The Walden Galleria store will continue to offer a full merchandise assortment and honor the company's hassle-free return and exchange policy until it closes. Thereafter, Walden Galleria customers may return merchandise to any other Bon-Ton location.
The Bon-Ton acquired the leasehold interests in the 150,000 square foot Walden Galleria location in 1994 and subsequently opened the store under the Bon-Ton name. The carrying value of the long-lived assets at this location was adjusted to fair value in prior periods; however, the Company will incur pre-tax costs associated with the closing of the location estimated at $1.8 million, or $0.07 per share on an after-tax basis.
The closing costs include a termination payment, redistribution of remaining inventory, severance for associates and general closing costs. The Company expects the store closing will be accretive to earnings in 2006. The closing will impact approximately 90 associates. The closing cost was not anticipated in the Company's earnings guidance for the year; therefore, the Company is adjusting its earnings per share guidance to a range of $1.43 to $1.53 per share.
Affected associates will be offered the opportunity to interview for available positions at other Bon-Ton store locations. Associates will receive career transition benefits including severance, career counseling and state employment service support.
Bon-Ton Stores Inc operates 139 department stores and two furniture stores in 16 states from the Northeast to the Midwest under the Bon-Ton and Elder-Beerman names. The stores carry a broad assortment of quality brand-name fashion apparel and accessories for women, men and children, as well as distinctive home furnishings.