The third quarter financial reports were released on Thursday by Bon-Ton which indicated that the sales revenue is declined to a great extent leading to net losses in comparison to the revenues of the third- quarter in 2016. The retail market is suffering from stiff competition which resulted in an announcement of Bon-Ton about plans to shutting down some of the retail stores which were not performing adequately and resulting in adding to the net loss of the company. The company is planning to shut down minimum 40 retail outlets across the company in order to survive in the cut-throat competitive market conditions but they haven’t decided specifically which location stores would be shut down. The company currently have their stores located in Berk county, Wyomissing, Lehigh Valley, Lehigh County and Bucks County.
The shareholder’s deficits of the company are constantly rising since 2016 when it was $68.6 million and currently roused up to $155.9 million until the third quarter of 2017. There is slight positive incline in the cash revenue of the company which increased from $6.9 million in 2016 to $7.2 million in the third quarter of 2017. This indicates good news for the company but still they require support and help from the financial companies and lenders along with the investors for ensuring that the company is able to retain sufficient cash to retain sufficient amount of the inventories which would be useful for them during the holiday season which is across the corner of the end of this year. The company requires at most support from their advisory firms like Alix Partners LLP and PJT Partners Inc. related to the financial and operational activities of the organization in order to minimize the expenses and improve profitability.
Two major holiday festival seasons are close currently which is considered to be the biggest opportunity for the company to make the turnaround plan successful to enhancing the sales revenue and improving profitability. The strategy developed by the company is to announce the biggest sales ever during the day of Thanksgiving at around 11.00 am. The company is ready with an aggressive approach to improving the financial conditions but using this opportunity to enhance the sales revenue and profits by revamping their merchandise and developing a more powerful marketing strategy. The marketing strategy would use all possible types of advertising products including radio channels and digital marketing which are the most effective tools currently. The next focused parameter would be the reduction in the overall operational cost which would improve the profitability of the company.