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Credit Crunch Taking Its Toll on Bon-Ton

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This is one of the examples of the credit crunch affecting the "real" economy.

Apparel and home furnishings retailer Bon-Ton Stores Inc is facing tightened credit for inventory deliveries as the crucial holiday season approaches, the New York Post reported, citing sources.

Big clothing manufacturers have tightened terms on shipments and are demanding quicker payments from Bon-Ton but are expected to ship orders through Christmas, the paper said.

"We have plenty of cash on hand to get us through the holiday season without any issues," Bon-Ton spokeswoman Mary Kerr told the paper, noting the retailer had $241 million available on a revolving credit line on Sept 30.

Small suppliers to the York, Pennsylvania-based retailer, in recent weeks, have said credit to make deliveries is drying up as lenders have all but stopped extending credit for deliveries during November and December, the paper said.

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Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
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