Bon-Ton Department Stores said it is electing to exercise a 30-day grace period to put off a $14 million interest payment due Dec. 15, according to a Dec. 19 8-K filed with the Securities and Exchange Commission.
The payment was connected to its 8 percent second lien senior secured notes.
The company’s lenders have said that exercising the 30-day grace period will not hamper its ability to borrow under the facility, according to the filing.
The missed payment is the latest in a series of struggles for the 260-location department store chain. Bloomberg has reported that its vendors are pulling back, and recently appointed CEO Bill Tracy said the company plans to close at least 40 stores over the next year.