OLEAN, N.Y. — The last original anchor of the Olean Center Mall will be closing its doors this year, company officials announced this week as Bon-Ton Stores Inc. begins to close all remaining locations by August.
Company officials announced Thursday evening that store closure sales will begin today in all remaining Bon-Ton Stores Inc. stores, with sales expected to finish liquidation in 10 to 12 weeks, which would put the final closure in the final weeks of July.
Employees at the Olean store declined to comment Thursday, recommending questions be sent to a corporate official. They noted, however, that few details on the closing have been relayed to staff at the local level, such as when the store will close.
The firm announced late Wednesday that a federal bankruptcy court in Delaware approved the sale of the firm’s inventory and “substantially all” of the company’s assets.
The winner of the auction was a joint venture between noteholders, Great American Group LLC, and Tiger Capital Group, LLC — two firms known for liquidating businesses. The auction began Monday, wrapping up on Tuesday. Bon-Ton officials originally sought to sell to an investor group composed of DW Partners, Namdar Realty Group and Washington Prime Group in an attempt to keep at least some of the stores open. That interest, announced April 9, was unsuccessful.
“The company is committed to working constructively with the winning bidder to ensure an orderly wind-down of operations that minimizes the impact on associates, customers, vendors and the communities we serve,” said CEO Bill Tracy in a statement. “The company’s stores, e-commerce and mobile platforms under the Bon-Ton, Bergner’s, Boston Store, Carson’s, Elder-Beerman, Herberger’s and Younkers nameplates will remain open throughout the store closing sales.”
In November, the firm announced shortly before Black Friday that it would close around 40 stores. A list of stores released in January indicated 47 would close, while the Olean store would remain open. The store closing total included four that closed in January and another which closed in February. The remainder of the announced closings are expected to wrap up by the end of this month. The firm operates 257 stores in 24 states under seven brand names.
Olean Mayor Bill Aiello said the city has not received notice of the closure from the firm or through the state-mandated Workforce Adjustment and Retraining Notification system.
“I feel so bad for the employees there,” Aiello said. “We hope the mall can do something to get something back in there.”
Olean Times Herald archives indicate the store, previously AM&A, opened during the mall’s debut in 1977. Bon-Ton purchased AM&A, a Buffalo-based chain of 10 department stores, in 1994 for a reported $38.5 million.
Zamias Services Inc, a Johnstown, Pa.-based mall developer, is the owner of the mall. A request for comment was not returned Thursday. At least one other Zamias property — Indiana Mall in Indiana, Pa. — also leases to a Bon-Ton store, according to the mall’s website.
The remaining anchors at Olean’s mall include J.C. Penney Co. and Kohl’s. J.C. Penney Co. moved to the mall in 1994 from the town of Allegany, while Kohl’s opened its mall location in 2012. J.C. Penney Co. originally occupied the site now used by Kohl’s, but later moved to its current site following the departure of Ames.
As of Thursday, the mall hosts more than 20 businesses and eight vacant storefronts. When Bon-Ton closes, it will be the fourth new vacancy in the mall in a year. Recent closings include Rue 21 clothing store, Seasons Bookstore & Gifts and Subway.
Bon-Ton is one of two area chains to declare bankruptcy in February. Tops Markets LLC filed for Chapter 11 reorganization on Feb. 21.
The department store is also one of two large retailers to close its doors in the last year. The Olean Kmart on West State Street closed in September due to lagging sales and a bleak outlook for the firm. Beginning in October, a $1.35 million project to redevelop the site began, with TJX officials announcing this week that a Marshalls store will open after months of signs being on display.
Marshalls’ grand opening is set for Thursday.
