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BON TON STORES INC

FORM
10-Q
(Quarterly Report)

Filed 06/08/16 for the Period Ending 04/30/16


Address
Telephone
CIK
Symbol
SIC Code
Industry
Sector
Fiscal Year

2801 E MARKET ST
YORK, PA 17402-2406
7177577660
0000878079
BONT
5311 - Department Stores
Retail (Department & Discount)
Services
01/31

http://www.edgar-online.com
Copyright 2016, EDGAR Online, Inc. All Rights Reserved.
Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use.

UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
WASHINGTON,DC20549

FORM10-Q

QuarterlyReportPursuanttoSection13or15(d)
oftheSecuritiesExchangeActof1934

FortheQuarterendedApril30,2016

CommissionFileNumber
0-19517

THEBON-TONSTORES,INC.
2801EastMarketStreet
York,Pennsylvania17402
(717)757-7660

IncorporatedinPennsylvania

IRSNo.23-2835229

Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934
duringtheprecedingtwelvemonths(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfiling
requirementsforthepast90days.Yesx
Noo

IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFile
requiredtobesubmittedandpostedpursuanttoRule405ofRegulationS-T(232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiod
thattheregistrantwasrequiredtosubmitandpostsuchfiles).Yesx
Noo

Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,orasmallerreportingcompany.See
thedefinitionsoflargeacceleratedfiler,acceleratedfilerandsmallerreportingcompanyinRule12b-2oftheExchangeAct.

Largeacceleratedfilero
Acceleratedfilerx
Non-acceleratedfilero
Smallerreportingcompanyo
(Donotcheckifasmallerreporting
company)

Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).Yeso
Nox

AsofMay27,2016,therewere18,613,025sharesofCommonStock,$.01parvalue,and2,951,490sharesofClassACommonStock,$.01parvalue,
outstanding.


PARTI:FINANCIALINFORMATION
ITEM1.FINANCIALSTATEMENTS

THEBON-TONSTORES,INC.
CONSOLIDATEDBALANCESHEETS

(Unaudited)

April30,
2016

(Inthousands,exceptshareandpersharedata)

Assets
Currentassets:
Cashandcashequivalents
Merchandiseinventories
Prepaidexpensesandothercurrentassets
Totalcurrentassets
Property,fixturesandequipmentatcost,netofaccumulateddepreciationandamortization
of$974,272,$931,661and$951,786atApril30,2016,May2,2015andJanuary30,
2016,respectively
Intangibleassets,netofaccumulatedamortizationof$63,647,$64,625and$62,204at
April30,2016,May2,2015andJanuary30,2016,respectively
Otherlong-termassets
Totalassets

LiabilitiesandShareholders(Deficit)Equity
Currentliabilities:
Accountspayable
Accruedpayrollandbenefits
Accruedexpenses
Currentmaturitiesoflong-termdebt
Currentmaturitiesofobligationsundercapitalleases
Totalcurrentliabilities

Long-termdebt,lesscurrentmaturities
Obligationsundercapitalleases,lesscurrentmaturities
Otherlong-termliabilities
Totalliabilities

Contingencies(Note9)

Shareholders(deficit)equity
PreferredStockauthorized5,000,000sharesat$0.01parvalue;nosharesissued
CommonStockauthorized40,000,000sharesat$0.01parvalue;issuedsharesof
18,954,675,18,331,899and18,532,577atApril30,2016,May2,2015and
January30,2016,respectively
ClassACommonStockauthorized20,000,000sharesat$0.01parvalue;issuedand
outstandingsharesof2,951,490atApril30,2016,May2,2015andJanuary30,2016
Treasurystock,atcost337,800sharesatApril30,2016,May2,2015and
January30,2016
Additionalpaid-incapital
Accumulatedothercomprehensiveloss
Accumulateddeficit
Totalshareholders(deficit)equity
Totalliabilitiesandshareholders(deficit)equity

7,807
712,113
72,246
792,166

80,619
16,713
1,512,584

635,334

88,538
14,609
1,570,191

159,818
22,309
146,585

5,529
334,241

864,856
125,269
189,477
1,513,843

190

183

185

30

(1,387)
165,199
(75,255)
(90,036)
(1,259)
1,512,584

30

30

162,831
28,527
147,378

5,394
344,130

855,977
126,692
188,911
1,515,710

197,789
21,116
152,598
209,358
4,061
584,922

690,648
43,629
196,549
1,515,748

82,062
17,398
1,550,626

642,268

623,086

6,879
711,699
97,254
815,832

8,711
738,231
77,834
824,776

(1,387)
162,253
(79,423)
(27,213)
54,443
1,570,191

Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.

(1,387)
164,428
(76,122)
(52,218)
34,916
1,550,626

January30,
2016

May2,
2015


THEBON-TONSTORES,INC.
CONSOLIDATEDSTATEMENTSOFOPERATIONS

THIRTEEN
WEEKSENDED
April30,
May2,
2016
2015

(Inthousands,exceptpersharedata)
(Unaudited)

Netsales
Otherincome

Costsandexpenses:
Costsofmerchandisesold
Selling,generalandadministrative
Depreciationandamortization
Amortizationoflease-relatedinterests
Lossfromoperations
Interestexpense,net

Lossbeforeincometaxes
Incometaxbenefit

Netloss
$

Pershareamounts
Basic:
Netloss
$

Diluted:
Netloss
$

Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.

591,007
17,416
608,423

(1.91)

(1.74)

(1.74)

(1.91)

404,465
218,686
22,033
1,101
(19,043)
15,190

(34,233)
(159)

(34,074)

390,913
216,185
23,194
1,007
(22,876)
15,086

(37,962)
(144)

(37,818)

610,938
16,304
627,242


THEBON-TONSTORES,INC.
CONSOLIDATEDSTATEMENTSOFCOMPREHENSIVELOSS

THIRTEEN
WEEKSENDED
April30,
May2,
2016
2015

(Inthousands)
(Unaudited)

Netloss
Othercomprehensiveincome,netoftax:
Pensionandpostretirementbenefitplans
Comprehensiveloss

(37,818)

(34,074)

982
(33,092)

Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
4

867
(36,951)


THEBON-TONSTORES,INC.
CONSOLIDATEDSTATEMENTSOFCASHFLOWS

(Inthousands)
(Unaudited)

THIRTEEN
WEEKSENDED
April30,
May2,
2016
2015

Cashflowsfromoperatingactivities:
Netloss
$
Adjustmentstoreconcilenetlosstonetcashprovidedby(usedin)operatingactivities:
Depreciationandamortization
Amortizationoflease-relatedinterests
Share-basedcompensationexpense
Lossonsaleofproperty,fixturesandequipment
Reclassificationsofaccumulatedothercomprehensiveloss
Amortizationofdeferredfinancingcosts
Deferredincometaxbenefit
Changesinoperatingassetsandliabilities:
Increaseinmerchandiseinventories
Decreaseinprepaidexpensesandothercurrentassets
Decreaseinotherlong-termassets
Increase(decrease)inaccountspayable
Decreaseinaccruedpayrollandbenefitsandaccruedexpenses
Increase(decrease)inotherlong-termliabilities
Netcashprovidedby(usedin)operatingactivities

Cashflowsfrominvestingactivities:
Capitalexpenditures
Proceedsfromsaleofproperty,fixturesandequipment
Netcashusedininvestingactivities

Cashflowsfromfinancingactivities:
Paymentsonlong-termdebtandcapitalleaseobligations
Proceedsfromissuanceoflong-termdebt
Cashdividendspaid
Restrictedsharesforfeitedinlieuofpayrolltaxes
Proceedsfromstockoptionsexercised
Deferredfinancingcostspaid
Decreaseinbookoverdraftbalances
Netcashprovidedbyfinancingactivities

Netincrease(decrease)incashandcashequivalents

Cashandcashequivalentsatbeginningofperiod

Cashandcashequivalentsatendofperiod
$

Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.

(37,818)

(34,074)

23,194
1,007
896
21
1,464
849
(144)

22,033
1,101
844

1,591
747
(159)

(414)
25,008
577
2,533
(5,102)
207
12,278

(3,274)
15,560
484
(5,634)
(10,676)
(6,373)
(17,830)

(12,626)
7
(12,619)

(24,448)

(24,448)

(144,117)
151,461

(120)

(495)
(5,460)
1,269

928

6,879

7,807

(139,000)
187,611
(991)
(399)
454

(5,439)
42,236

(42)

8,753

8,711


THEBON-TONSTORES,INC.
CONSOLIDATEDSTATEMENTSOFSHAREHOLDERS(DEFICIT)EQUITY

(Inthousands,exceptpersharedata)
(Unaudited)

Common
Stock

BALANCEATJANUARY31,2015

Netloss
Othercomprehensiveincome
Dividendstoshareholders,$0.05pershare
Restrictedsharesforfeitedinlieuofpayroll
taxes
Proceedsfromstockoptionsexercised
Share-basedcompensationexpense
BALANCEATMAY2,2015

BALANCEATJANUARY30,2016

Netloss
Othercomprehensiveincome
Restrictedsharesforfeitedinlieuofpayroll
taxes
Share-basedcompensationexpense
BALANCEATAPRIL30,2016

178 $

(1)
1
5
183 $

185 $

Treasury
Stock

30

(1,387) $

(1,387) $

(1,387) $

(1,387) $

30 $

30 $

5
190

30 $

ClassA
Common
Stock

Additional
Paid-in
Capital

Accumulated
Other
Comprehensive
Loss

161,359 $

Total

7,873 $

(34,074)

(1,012)

87,648

(34,074)
982
(1,012)

(27,213) $

(52,218) $

(37,818)

(399)
454
844
54,443

34,916

(37,818)
867

(79,423) $

(76,122) $

867

(75,255) $

Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.
6

(Accumulated
Deficit)
Retained
Earnings

(120)
891
165,199 $

(80,405) $

982

(398)
453
839
162,253 $

164,428 $

(90,036) $

(120)
896
(1,259)


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

1.BASISOFPRESENTATION

TheBon-TonStores,Inc.,aPennsylvaniacorporation,wasincorporatedonJanuary31,1996asthesuccessorofacompanyincorporatedonJanuary31,
1929.AsofApril30,2016,TheBon-TonStores,Inc.operated,throughitssubsidiaries,267stores,includingninefurnituregalleriesandfourclearancecenters,in
26statesintheNortheast,MidwestandupperGreatPlainsundertheBon-Ton,Bergners,BostonStore,Carsons,Elder-Beerman,HerbergersandYounkers
nameplates.

TheaccompanyingunauditedconsolidatedfinancialstatementsincludetheaccountsofTheBon-TonStores,Inc.(theParent)anditssubsidiaries
(collectively,theCompany).Allintercompanytransactionshavebeeneliminatedinconsolidation.

TheunauditedconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththeinstructionsforForm10-Qanddonotincludeallinformation
andfootnotesrequiredinannualconsolidatedfinancialstatementspreparedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates.In
theopinionofmanagement,alladjustmentsconsiderednecessaryforafairpresentationofinterimperiodshavebeenincluded.TheCompanysbusinessis
seasonalinnatureandresultsofoperationsfortheinterimperiodspresentedarenotnecessarilyindicativeofresultsforthefullfiscalyear.Theseunaudited
consolidatedfinancialstatementsshouldbereadinconjunctionwiththeconsolidatedfinancialstatementsandnotestheretoincludedintheCompanysAnnual
ReportonForm10-KforthefiscalyearendedJanuary30,2016.

Forpurposesofthefollowingdiscussion,referencestothefirstquarterof2016andthefirstquarterof2015aretothe13weeksendedApril30,2016
andMay2,2015,respectively.Referencestofiscal2016aretothe52weeksendingJanuary28,2017;referencestofiscal2015aretothe52weeksended
January30,2016.

ThepreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesrequiresthatmanagementmake
estimatesandassumptionsaboutfutureevents.Theseestimatesandassumptionsaffecttheamountsofassetsandliabilitiesreported,disclosuresaboutcontingent
assetsandliabilities,andthereportedamountsofrevenuesandexpenses.Suchestimatesincludethoserelatedtomerchandisereturns,thevaluationofinventories,
long-livedassets,intangibleassets,insurancereserves,contingencies,litigationandassumptionsusedinthecalculationofincometaxesandretirementandother
post-employmentbenefits,amongothers.Theseestimatesandassumptionsarebasedonmanagementsbestestimatesandjudgments.Managementevaluatesits
estimatesandassumptionsonanongoingbasisusinghistoricalexperienceandotherfactors,includingthecurrenteconomicenvironment,whichmanagement
believestobereasonableunderthecircumstances.Managementadjustssuchestimatesandassumptionswhenfactsandcircumstancesdictate.Asfutureevents
andtheireffectscannotbedeterminedwithprecision,actualresultscoulddiffersignificantlyfromtheseestimates.Changesinthoseestimatesresultingfrom
continuingchangesintheeconomicenvironmentwillbereflectedinthefinancialstatementsinfutureperiods.

Reclassifications

Certainprioryearbalancespresentedintheconsolidatedfinancialstatementsandnotestheretohavebeenreclassifiedtoconformtothecurrentyear
presentation.ThesereclassificationsdidnotimpacttheCompanysnetlossforthefirstquarterineachof2016and2015.AsaresultofadoptingAccounting
StandardsUpdate(ASU)No.2015-17,Income
Taxes
(Topic
740):
Balance
Sheet
Classification
of
Deferred
Taxes
(ASU
2015-17)
asofJanuary30,2016,the
CompanyreclassifiedtheMay2,2015consolidatedbalancesheetresultinginareductionof$17,373inlong-termdeferredincometaxassets,areductionincurrent
deferredincometaxliabilitiesof$26,519andanincreaseinotherlong-termliabilitiesof$9,146.


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

Recently Adopted Accounting Standards

EffectiveJanuary31,2016,theCompanyadoptedASUNo.2015-03,Interest-Imputation
of
Interest
(ASU2015-03)andASUNo.2015-15(an
amendmenttoASU2015-03)andretrospectivelyappliedtheirprovisions.Thenewstandardsrequirethatdebtissuancecostsrelatedtoarecognizeddebtliability,
otherthanthoserelatingtoline-of-creditarrangements,bepresentedinthebalancesheetasadirectdeductionfromthecarryingamountofthatdebtliability.Asa
resultofadoptingthisguidance,asofMay2,2015andJanuary30,2016,theCompanyreclassified$7,643and$6,580,respectively,oftheunamortizeddebt
issuancecostsforalldebtinstrumentsexcepttheseniorsecuredcreditfacilityfromotherlong-termassetstolong-termdebtandcurrentmaturitiesoflong-term
debtontheconsolidatedbalancesheets.

EffectiveJanuary31,2016,theCompanyadoptedASUNo.2015-05,Intangibles-Goodwill
and
Other-Internal-Use
Software
andprospectivelyapplied
itsprovisions.Thenewstandardprovidesguidanceontheaccountingforfeespaidbyacustomerinacloudcomputingarrangement.Ifacloudcomputing
arrangementincludesasoftwarelicense,thenthecustomerisrequiredtoaccountforthesoftwarelicenseconsistentwiththeacquisitionofothersoftwarelicenses.
Conversely,ifthearrangementdoesnotincludeasoftwarelicense,thecustomershouldaccountforthearrangementasaservicecontract.Theadoptionofthis
guidancedidnothaveamaterialimpactontheCompanysconsolidatedfinancialstatements.

2.PER-SHAREAMOUNTS

Thefollowingtablepresentsareconciliationofnetlossandweightedaveragesharesoutstandingusedinbasicanddilutedearnings(loss)pershare
(EPS)calculationsforeachperiodpresented:

THIRTEEN
WEEKSENDED
April30,
May2,
2016
2015

(37,818)

(37,818)

19,760,448

19,760,448

(1.91)

(34,074)

(34,074)

19,561,610

19,561,610

(1.74)

(34,074)

(34,074)

19,561,610

(1.74)

(37,818)

(37,818)

19,760,448

(1.91)

BasicLossPerCommonShare
Netloss
Less:Incomeallocatedtoparticipatingsecurities
Netlossavailabletocommonshareholders

Weightedaveragecommonsharesoutstanding

Basiclosspercommonshare

DilutedLossPerCommonShare
Netloss
Less:Incomeallocatedtoparticipatingsecurities
Netlossavailabletocommonshareholders

Weightedaveragecommonsharesoutstanding
Commonsharesissuable-stockoptions
Weightedaveragecommonsharesoutstandingassumingdilution

Dilutedlosspercommonshare


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

DuetotheCompanysnetlossposition,weightedaverageunvestedrestrictedshares(participatingsecurities)of1,220,177and708,961forthefirst
quarterineachof2016and2015,respectively,werenotconsideredinthecalculationofnetlossavailabletocommonshareholdersusedforbothbasicanddiluted
EPS.

Inaddition,weightedaveragestockoptionshares(non-participatingsecurities)totaling0and110,196forthefirstquarterineachof2016and2015,
respectively,wereexcludedfromthecomputationofdilutedweightedaveragecommonsharesoutstanding,astheireffectwouldhavebeenantidilutive.Certainof
thesestockoptionshareswereexcludedsolelyduetotheCompanysnetlossposition.HadtheCompanyreportednetincomeforthefirstquarterineachof2016
and2015,theseshareswouldhaveincreaseddilutedweightedaveragecommonsharesoutstandingby0and16,790,respectively.

3.FAIRVALUEMEASUREMENTS

AccountingStandardsCodification(ASC)Topic820,Fair
Value
Measurements
and
Disclosures
(ASC820),definesfairvalueandestablishesa
frameworkformeasuringfairvalue.ASC820establishesfairvaluehierarchylevelsthatprioritizetheinputsusedinvaluationsdeterminingfairvalue.Level1
inputsareunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilities.Level2inputsareprimarilyquotedpricesforsimilarassetsorliabilitiesin
activemarketsorinputsthatareobservablefortheassetorliability,eitherdirectlyorindirectly.Level3inputsareunobservableinputsbasedontheCompanys
ownassumptions.

ThecarryingvaluesoftheCompanyscashandcashequivalents,accountspayableandfinancialinstrumentsreportedwithinprepaidexpensesandother
currentassetsandotherlong-termassetsapproximatefairvalue.

ThecarryingvalueandestimatedfairvalueoftheCompanyslong-termdebt,includingcurrentmaturitiesbutexcludingcapitalleasesandunamortized
debtissuancecosts,asofApril30,2016areasfollows:

Carrying
Value

Secondlienseniorsecurednotes
Seniorsecuredcreditfacility
Total

407,292
463,898
871,190

Estimated
FairValue

Quoted
Pricesin
Active
Markets
(Level1)

204,563
463,898
668,461

204,563

204,563

FairValueMeasurementsUsing
Significant
Other
Significant
Observable
Unobservable
Inputs
Inputs
(Level2)
(Level3)

463,898
463,898


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

ThecarryingvalueandestimatedfairvalueoftheCompanyslong-termdebt,includingcurrentmaturitiesbutexcludingcapitalleasesandunamortizeddebt
issuancecosts,asofMay2,2015areasfollows:

Carrying
Value

Secondlienseniorsecurednotes
Mortgagefacility
Seniorsecuredcreditfacility
Total

Quoted
Pricesin
Active
Markets
(Level1)

354,228
211,637
290,705
856,570

354,228

354,228

FairValueMeasurementsUsing
Significant
Other
Significant
Observable
Unobservable
Inputs
Inputs
(Level2)
(Level3)

Estimated
FairValue

407,292
209,652
290,705
907,649

211,637
290,705
502,342

ThecarryingvalueandestimatedfairvalueoftheCompanyslong-termdebt,includingcurrentmaturitiesbutexcludingcapitalleasesandunamortized
debtissuancecosts,asofJanuary30,2016areasfollows:

Secondlienseniorsecurednotes
Seniorsecuredcreditfacility
Total

Carrying
Value

Estimated
FairValue

168,584
455,265
623,849

407,292
455,265
862,557

FairValueMeasurementsUsing
Significant
Quoted
Other
Significant
Pricesin
Observable
Unobservable
ActiveMarkets
Inputs
Inputs
(Level1)
(Level2)
(Level3)

168,584

168,584

455,265
455,265

TheLevel3fairvalueestimatesaredeterminedbyadiscountedcashflowanalysisutilizingadiscountratetheCompanybelievesisappropriateand
wouldbeusedbymarketparticipants.TherewasnochangeinthevaluationtechniqueusedtodeterminetheLevel3fairvalueestimates.

4.
SUPPLEMENTALBALANCESHEETINFORMATION

Prepaidexpensesandothercurrentassetswerecomprisedofthefollowing:

April30,
2016

Otherreceivables
Prepaidexpenses
Total

10

39,167
33,079
72,246

35,198
42,636
77,834

60,514
36,740
97,254

January30,
2016

May2,
2015


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

5.SUPPLEMENTALCASHFLOWINFORMATION

Thefollowingsupplementalcashflowinformationisprovidedfortheperiodsreported:

THIRTEEN
WEEKSENDED
April30,
May2,
2016
2015

Cashpaidfor:
Interest,netofamountscapitalized
$
8,668
$
9,315

Non-cashinvestingandfinancingactivities:
Property,fixturesandequipmentincludedinaccruedexpenses
$
3,449
$
5,711
Declareddividendstoshareholdersincludedinaccruedexpenses

1,012

6.EXITORDISPOSALACTIVITIES

Thefollowingtablesummarizesexitordisposalactivitiesduringthe13weeksendedApril30,2016relatedtostoreclosingsinfiscal2015and2016,the
consolidationofeCommercefulfillmentactivitiesinconnectionwiththeCompanysneweCommercefulfillmentcenterandtheCompanysexpenseefficiency
initiative:

Other
Costs

3,696
421
(1,906)
2,211

Total

41
(41)

Termination
Benefits

AccruedbalanceasofJanuary30,2016
Provisions
Payments
AccruedbalanceasofApril30,2016

3,696
462
(1,947)
2,211

Theaboveprovisionswereincludedwithinselling,generalandadministrativeexpense.

7.EMPLOYEEDEFINEDANDPOSTRETIREMENTBENEFITPLANS

TheCompanyprovidesbenefitstocertaincurrentandformerassociateswhoareeligibleunderaqualifieddefinedbenefitpensionplanandvariousnonqualifiedsupplementalpensionplans(collectively,thePensionPlans).NetperiodicbenefitexpenseforthePensionPlansincludesthefollowing(income)and
expensecomponents:

11


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

THIRTEEN
WEEKSENDED
April30,
May2,
2016
2015

Interestcost
Expectedreturnonplanassets
Recognitionofnetactuarialloss
Netperiodicbenefitexpense

1,785
(2,100)
1,571
1,256

1,701
(2,410)
1,698
989

Duringthe13weeksendedApril30,2016,contributionsof$185weremadetothePensionPlans.TheCompanyanticipatescontributinganadditional
$517tofundthePensionPlansinfiscal2016foranannualtotalof$702.

TheCompanyalsoprovidesmedicalandlifeinsurancebenefitstocertainformerassociatesunderapostretirementbenefitplan(PostretirementBenefit
Plan).NetperiodicbenefitincomeforthePostretirementBenefitPlanincludesthefollowing(income)andexpensecomponents:

THIRTEEN
WEEKSENDED
April30,
May2,
2016
2015

Interestcost
Recognitionofnetactuarialgain
Netperiodicbenefitincome

15
(107)
(92)

16
(107)
(91)

Duringthe13weeksendedApril30,2016,theCompanycontributed$33tofundthePostretirementBenefitPlan,andanticipatescontributingan
additional$294tofundthePostretirementBenefitPlaninfiscal2016,foranetannualtotalof$327.

8.INCOMETAXES

TheprovisionscodifiedwithinASCTopic740,Income
Taxes
(ASC740),requirecompaniestoassesswhethervaluationallowancesshouldbe
establishedagainsttheirdeferredtaxassetsbasedonconsiderationofallavailableevidenceusingamorelikelythannotstandard.InaccordancewithASC740,
theCompanymaintainedafullvaluationallowancethroughoutfiscal2015andthefirstquarterof2016onalloftheCompanysnetdeferredtaxassets.The
Companysdeferredtaxassetvaluationallowancetotaled$202,277,$175,356and$186,582asofApril30,2016,May2,2015andJanuary30,2016,respectively.

TheCompanyrecordednetincometaxbenefitsof$144and$159forthefirstquarterineachof2016and2015,respectively,whichincludes$597and
$609non-cashincometaxbenefitsfromcontinuingoperationsduringthefirstquarterineachof2016and2015,respectively.PursuanttoASC740,theCompany
isrequiredtoconsiderallitems(includingitemsrecordedinothercomprehensiveincome)indeterminingtheamountoftaxbenefitthatresultsfromalossfrom
continuingoperationsandthatshouldbeallocatedtocontinuingoperations.Asaresult,theCompanyrecordedtaxbenefitsonthelossesfromcontinuing
operationsforthefirstquarterineachof2016and2015,whichareexactlyoffsetbyincometaxexpenseonother

12


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

comprehensiveincome.Inaddition,thenetincometaxbenefitsinclude$453and$450ofexpenserecordedinthefirstquarterineachof2016and2015,
respectively,forrecognitionofdeferredtaxliabilitiesassociatedwithindefinite-livedassets.

9.CONTINGENCIES

TheCompanyispartytolegalproceedingsandclaimsthatariseduringtheordinarycourseofbusiness.Intheopinionofmanagement,theultimate
outcomeofanysuchlitigationandclaimswillnothaveamaterialadverseeffectontheCompanysfinancialposition,resultsofoperationsorliquidity.

10.COMPREHENSIVELOSS

AccumulatedothercomprehensivelossiscomprisedofthenetactuariallossassociatedwiththePensionPlansandPostretirementBenefitPlan.Other
comprehensiveincomeiscomprisedentirelyoftheamortizationofthenetactuarialloss(gain)associatedwiththePensionPlansandPostretirementBenefitPlan.

Thechangesrecognizedwithinothercomprehensiveincomereflectincometaxexpenseof$597and$609forthefirstquarterineachof2016and2015,
respectively(seeNote8).

Thebefore-taxamountofamortizationofnetactuarialloss(gain)(seeNote7)wasrecordedwithinselling,generalandadministrativeexpense.

11.CONDENSEDCONSOLIDATINGFINANCIALINFORMATION

CertaindebtobligationsoftheCompany,whichconstitutedebtobligationsofTheBon-TonDepartmentStores,Inc.(theIssuer),areguaranteedbythe
Parentandbyeachofitssubsidiaries,otherthantheIssuer,thatisanobligorundertheCompanysSecondAmendedandRestatedLoanandSecurityAgreement
(theSecondAmendedRevolvingCreditFacility).SeparatefinancialstatementsoftheParent,theIssuerandsuchsubsidiaryguarantorsarenotpresented
becausetheguaranteesbytheParentandeach100%ownedsubsidiaryguarantorarejointandseveral,fullandunconditional,exceptforcertaincustomary
limitationswhichareapplicableonlytoasubsidiaryguarantor.Thesecustomarylimitationsincludereleasesofaguarantee(1)ifthesubsidiaryguarantorno
longerguaranteesotherindebtednessoftheIssuer;(2)ifthereisasaleorotherdispositionofthecapitalstockofasubsidiaryguarantorandifsuchsalecomplies
withthecovenantregardingassetsales;and(3)ifthesubsidiaryguarantorisproperlydesignatedasanunrestrictedsubsidiary.

ThecondensedconsolidatingfinancialinformationfortheParent,theIssuerandtheguarantorsubsidiariesasofApril30,2016,May2,2015and
January30,2016andforthefirstquarterineachof2016and2015aspresentedbelowhasbeenpreparedfromthebooksandrecordsmaintainedbytheParent,the
Issuerandtheguarantorsubsidiaries.Thecondensedfinancialinformationmaynotnecessarilybeindicativeoftheresultsofoperationsorfinancialpositionhad
theguarantorsubsidiariesoperatedasindependententities.Certainintercompanyrevenuesandexpensesincludedinthesubsidiaryrecordsareeliminatedin
consolidation.Asaresultofthisactivity,anamountdueto/duefromaffiliateswillexistatanytime.

OnJanuary15,2016,theCompanyandcertainothersubsidiariesasborrowersorobligors(collectively,theObligors)enteredintoaConsentandThird
AmendmenttotheSecondAmendedRevolvingCreditFacility,whichamongotherchanges,providedforthejoindersofthespecialpurposeentities(SPEs)that
hadpreviouslyparticipatedintheCompanysmortgageloanfacilityasObligorsundertheSecondAmendedRevolvingCreditFacility,andasRestricted
Subsidiariesandguarantorsundertheindenturesforboththe105/8%secondlienseniorsecurednotesdue2017andthe8.00%secondlienseniorsecurednotes
due2021.TheSPEsandtheirassetswerethenaddedtothesecondliensecurityagreement.Forcomparativepurposes,thecondensedconsolidatingfinancial
informationaspresentedbelowhasbeenretrospectivelyadjustedasiftheactivitydescribedaboveoccurredatthebeginningofeachperiodpresented.

13


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

TheBon-TonStores,Inc.
CondensedConsolidatingBalanceSheet
April30,2016

Assets
Currentassets:
Cashandcashequivalents
Merchandiseinventories
Prepaidexpensesandothercurrentassets
Totalcurrentassets
Property,fixturesandequipmentatcost,net
Intangibleassets,net
Investmentinandadvancestoaffiliates
Otherlong-termassets
Totalassets

LiabilitiesandShareholders(Deficit)Equity
Currentliabilities:
Accountspayable
Accruedpayrollandbenefits
Accruedexpenses
Currentmaturitiesoflong-termdebtandobligations
undercapitalleases
Totalcurrentliabilities

Long-termdebtandobligationsundercapitalleases,less
currentmaturities
Otherlong-termliabilities
Totalliabilities

Shareholders(deficit)equity

Totalliabilitiesandshareholders(deficit)equity

Parent

Guarantor
Subsidiaries

Issuer

Consolidating
Eliminations

Company
Consolidated

(1,260)

(1,259)

(180)

159,818
22,309
146,585

4,082
80,477

(180)

5,529
334,241

(1,259)

(1,259)

937,882
137,104
1,328,930

(6,030)

1,322,900

52,243
55,639
188,359

824,437

1,012,796

(3,266)
(3,446)

(818,407)

(821,853)

990,125
189,477
1,513,843

(1,259)

1,512,584

14

1,447
253,944

4,250
72,145

159,818
18,059
74,620

7,807
712,113
72,246
792,166
623,086
80,619

16,713
1,512,584

(180)
(180)

(818,407)
(3,266)
(821,853)

4,800
256,685
4,411
265,896
311,941
60,317
373,687
955
1,012,796

3,006
455,428
68,015
526,449
311,145
20,302
445,980
19,024
1,322,900


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

TheBon-TonStores,Inc.
CondensedConsolidatingBalanceSheet
May2,2015

Assets
Currentassets:
Cashandcashequivalents
Merchandiseinventories
Prepaidexpensesandothercurrentassets
Totalcurrentassets
Property,fixturesandequipmentatcost,net
Intangibleassets,net
Investmentinandadvancestoaffiliates
Otherlong-termassets
Totalassets

LiabilitiesandShareholdersEquity
Currentliabilities:
Accountspayable
Accruedpayrollandbenefits
Accruedexpenses
Currentmaturitiesoflong-termdebtandobligations
undercapitalleases
Totalcurrentliabilities

Long-termdebtandobligationsundercapitalleases,less
currentmaturities
Otherlong-termliabilities
Totalliabilities

Shareholdersequity

Totalliabilitiesandshareholdersequity

Parent

Guarantor
Subsidiaries

Issuer

Consolidating
Eliminations

Company
Consolidated

54,442

54,443

(506)

197,789
21,116
152,598

(506)

213,419
584,922

54,443

54,443

695,713
150,210
1,142,284

52,621

1,194,905

38,564
46,339
373,970

756,898

1,130,868

(506)

(809,519)

(810,025)

734,277
196,549
1,515,748

54,443

1,570,191

15

212,948
289,067

471
296,361

3,937
72,182

197,789
17,179
80,922

8,711
738,231
77,834
824,776
642,268
88,538

14,609
1,570,191

(506)
(506)

(809,519)

(810,025)

5,456
268,258
11,660
285,374
366,885
64,656
413,542
411
1,130,868

3,254
469,973
66,680
539,907
275,383
23,882
341,535
14,198
1,194,905


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

TheBon-TonStores,Inc.
CondensedConsolidatingBalanceSheet
January30,2016

Assets
Currentassets:
Cashandcashequivalents
Merchandiseinventories
Prepaidexpensesandothercurrentassets
Totalcurrentassets
Property,fixturesandequipmentatcost,net
Intangibleassets,net
Investmentinandadvancestoaffiliates
Otherlong-termassets
Totalassets

LiabilitiesandShareholdersEquity
Currentliabilities:
Accountspayable
Accruedpayrollandbenefits
Accruedexpenses
Currentmaturitiesoflong-termdebtandobligations
undercapitalleases
Totalcurrentliabilities

Long-termdebtandobligationsundercapitalleases,less
currentmaturities
Otherlong-termliabilities
Totalliabilities

Shareholdersequity

Totalliabilitiesandshareholdersequity

Parent

Guarantor
Subsidiaries

Issuer

Consolidating
Eliminations

Company
Consolidated

34,915

34,916

(180)

162,831
28,527
147,378

(180)

5,394
344,130

34,916

34,916

929,377
138,810
1,325,953

30,917

1,356,870

53,292
53,412
193,248

824,850

1,018,098

(3,311)
(3,491)

(855,767)

(859,258)

982,669
188,911
1,515,710

34,916

1,550,626

16

3,999
86,544

1,395
257,766

5,373
77,172

162,831
23,154
70,386

6,879
711,699
97,254
815,832
635,334
82,062

17,398
1,550,626

(180)
(180)

(855,767)
(3,311)
(859,258)

4,056
244,437
9,088
257,581
315,598
61,098
382,958
863
1,018,098

2,822
467,262
88,346
558,430
319,736
20,964
437,894
19,846
1,356,870


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

TheBon-TonStores,Inc.
CondensedConsolidatingStatementofOperations
ThirteenWeeksEndedApril30,2016

Netsales
Otherincome

(37,962)

(37,962)
(144)

(37,818)

(12,483)
38,140
7,367

38,140
(91)

38,231

(15,086)

(37,962)
(144)

(37,818)

390,913
216,185
23,194
1,007
(22,876)

12,009

(1,022)

(178)
235

(413)

474
(178)
(21,431)

(37,962)
(144)

(37,818)

591,007
17,416
608,423

(5,116)

5,116

152,324
88,183
10,292
539
(11,165)

Company
Consolidated

238,589
133,118
12,902
468
(16,827)

Consolidating
Eliminations

233,511
6,662
240,173

357,496
10,754
368,250

Guarantor
Subsidiaries

Issuer

Costsandexpenses:
Costsofmerchandisesold
Selling,generalandadministrative
Depreciationandamortization
Amortizationoflease-relatedinterests
Lossfromoperations

Otherincome(expense):
Intercompanyincome
Equityinlossesofsubsidiaries
Interestexpense,net

Lossbeforeincometaxes
Incometax(benefit)provision

Netloss

Parent

TheBon-TonStores,Inc.
CondensedConsolidatingStatementofComprehensiveLoss
ThirteenWeeksEndedApril30,2016

Netloss
Othercomprehensiveincome,netoftax:
Pensionandpostretirementbenefitplans
Comprehensiveloss

Parent

(37,818)

Guarantor
Subsidiaries

Issuer

(37,818)

Consolidating
Eliminations

(413)

Company
Consolidated

38,231

(37,818)

867
(36,951)

867
(36,951)

867
(36,951)

(413)

(867)
37,364

17


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

TheBon-TonStores,Inc.
CondensedConsolidatingStatementofOperations
ThirteenWeeksEndedMay2,2015

Netsales
Otherincome

(34,233)

(34,233)
(159)

(34,074)

(11,814)
37,790
4,411

37,790
(77)

37,867

(15,190)

(34,233)
(159)

(34,074)

404,465
218,686
22,033
1,101
(19,043)

11,364

(4,185)

(3,557)
236

(3,793)

450
(3,557)
(15,416)

(34,233)
(159)

(34,074)

610,938
16,304
627,242

(7,403)

7,403

165,353
91,258
10,825
606
(10,736)

Company
Consolidated

239,112
134,831
11,208
495
(15,710)

Consolidating
Eliminations

250,472
6,834
257,306

360,466
9,470
369,936

Guarantor
Subsidiaries

Issuer

Costsandexpenses:
Costsofmerchandisesold
Selling,generalandadministrative
Depreciationandamortization
Amortizationoflease-relatedinterests
Lossfromoperations

Otherincome(expense):
Intercompanyincome
Equityinlossesofsubsidiaries
Interestexpense,net

Lossbeforeincometaxes
Incometax(benefit)provision

Netloss

Parent

TheBon-TonStores,Inc.
CondensedConsolidatingStatementofComprehensiveLoss
ThirteenWeeksEndedMay2,2015

Netloss
Othercomprehensiveincome,netoftax:
Pensionandpostretirementbenefitplans
Comprehensiveloss

Parent

(34,074)

Guarantor
Subsidiaries

Issuer

(34,074)

Consolidating
Eliminations

(3,793)

Company
Consolidated

37,867

(34,074)

982
(33,092)

982
(33,092)

982
(33,092)

(3,793)

(982)
36,885

18


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

TheBon-TonStores,Inc.
CondensedConsolidatingStatementofCashFlows
ThirteenWeeksEndedApril30,2016

Netcashprovidedbyoperatingactivities

Cashflowsfrominvestingactivities:
Capitalexpenditures
Proceedsfromsaleofproperty,fixturesandequipment
Netcashusedininvestingactivities

Cashflowsfromfinancingactivities:
Paymentsonlong-termdebtandcapitallease
obligations
Proceedsfromissuanceoflong-termdebt
Deferredfinancingcostspaid
Restrictedsharesforfeitedinlieuofpayrolltaxes
Decreaseinbookoverdraftbalances
Netcash(usedin)providedbyfinancingactivities

Netincreaseincashandcashequivalents

Cashandcashequivalentsatbeginningofperiod

Cashandcashequivalentsatendofperiod

120

(120)

(120)

19

(144,117)
151,461
(495)
(120)
(5,460)
1,269

928

6,879

7,807

12,278

(12,626)
7
(12,619)

(968)

(968)

744

4,056

4,800

Company
Consolidated

6,839

(143,149)
151,461
(495)

(5,460)
2,357

184

2,822

3,006

(5,127)

(5,127)

Consolidating
Eliminations

5,319

(7,499)
7
(7,492)

Guarantor
Subsidiaries

Issuer

Parent


THEBON-TONSTORES,INC.
NOTESTOCONSOLIDATEDFINANCIALSTATEMENTS
(Inthousands,exceptshareandpersharedata)

TheBon-TonStores,Inc.
CondensedConsolidatingStatementofCashFlows
ThirteenWeeksEndedMay2,2015

Netcashprovidedby(usedin)operatingactivities

Parent

1,390

Guarantor
Subsidiaries

Issuer

(25,585)

Consolidating
Eliminations

9,208

Company
Consolidated

(2,843)

(17,830)

Cashflowsfrominvestingactivities:
Capitalexpenditures

(20,402)
(4,046)

(24,448)
Intercompanyinvestingactivity
(454)
(176)

630

Netcashusedininvestingactivities
(454)
(20,578)
(4,046)
630
(24,448)

Cashflowsfromfinancingactivities:
Paymentsonlong-termdebtandcapitalleaseobligations

(135,973)
(3,027)

(139,000)
Proceedsfromissuanceoflong-termdebt

187,611

187,611
Intercompanyfinancingactivity

(991)
(1,222)
2,213

Cashdividendspaid
(991)

(991)
Restrictedsharesforfeitedinlieuofpayrolltaxes
(399)

(399)
Proceedsfromstockoptionsexercised
454

454
Decreaseinbookoverdraftbalances

(5,439)

(5,439)
Netcash(usedin)providedbyfinancingactivities
(936)
45,208
(4,249)
2,213
42,236

Net(decrease)increaseincashandcashequivalents

(955)
913

(42)

Cashandcashequivalentsatbeginningofperiod
1
4,209
4,543

8,753

Cashandcashequivalentsatendofperiod
$
1
$
3,254
$
5,456
$

$
8,711

12.SUBSEQUENTEVENT

OnJune1,2016,theCompanyenteredintoanAgreementofPurchaseandSale(PSA)forasale-leasebacktransactionwithanunrelatedparty.Under
thePSA,theCompanyagreedtosellthreeretaildepartmentstorepropertiesforatleast$44,935andleasethembackforaperiodof20yearswiththreeoptional
10-yearrenewalterms.Thebasicrentpayableinconnectionwiththeleasewillbe$3,932,subjecttoadjustmentforincreasesintheConsumerPriceIndex.The
closingofthistransactionissubjecttoaduediligencereviewbythepurchaser.

20


ITEM2.
MANAGEMENTSDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONS

Forpurposesofthefollowingdiscussion,referencestothefirstquarterof2016andthefirstquarterof2015aretothe13weeksendedApril30,2016
andMay2,2015,respectively.Referencestofiscal2016aretothe52-weekperiodendingJanuary28,2017;referencestofiscal2015aretothe52-week
periodendedJanuary30,2016.ReferencestotheCompany,we,us,andourrefertoTheBon-TonStores,Inc.anditssubsidiaries.

Overview

General

TheCompany,aPennsylvaniacorporation,isoneofthelargestregionaldepartmentstoreoperatorsintheUnitedStates,offeringabroadassortmentof
brand-namefashionapparelandaccessoriesforwomen,menandchildren.Ourmerchandiseofferingsalsoincludecosmetics,homefurnishingsandothergoods.
Wecurrentlyoperate267stores,includingninefurnituregalleriesandfourclearancecenters,in26statesintheNortheast,MidwestandupperGreatPlainsunder
theBon-Ton,Bergners,BostonStore,Carsons,Elder-Beerman,HerbergersandYounkersnameplates,encompassingatotalofapproximately25millionsquare
feet.

WeoperateinthedepartmentstoresegmentoftheU.S.retailindustry,ahighlycompetitiveenvironment.Thedepartmentstoreindustrycontinuesto
evolveinresponsetocompetitiveretailformatsmassmerchandisers,nationalchainretailers,specialtyretailersandonlineretailersandtheexpansionofmobile
technologyandsocialmedia.

PerformanceSummaryandFiscal2016Guidance

Ongoingheadwindsintheretailenvironment,unfavorableweatherandasoftEasterallpressuredourtop-lineperformanceduringthefirstquarterof
2016.Wesawaslightdecreaseinmerchandisemarginandreducedinventorylevelsby4.0%onaretailcomparablestorebasisdespitethesalespressure,aswe
maintaineddisciplinedinventorymanagement.Inaddition,wemovedforwardwithourcostsavingsinitiativeswhilecontinuingtocarefullymanageexpenses.

Ourrevenuesintheperiodbenefitedfromastrongperformanceinouromnichannelbusiness.Webelievethatthisincreaseisprimarilyduetofurther
enhancingourbrandpositioningandevolvingourmerchandiseoffering.Additionally,werealizedcontinuedgrowthinthepenetrationofproprietarycreditcard
salestototalsaleswhich,at54.9%inthefirstquarterof2016,exceededthatoftheprioryearby400basispoints.Ourrecentlyre-launchedcreditcardhelpedus
reconnectwithlapsedcustomersandfurtherourconnectionwithourloyalcorecustomers.Weintendtocontinuetoenhanceouronlineplatformsandwilladd
moremobilefriendlyaccesstoourYourRewardscreditcardcustomerloyaltyprogrambenefits.

Whilewedonotexpecttheheadwindsintheretailenvironmenttoease,webelievethatanumberofinitiativeswehaveunderwaywilldriveincremental
salesinthesecondhalfoftheyear.Weremainontracktoachieve$35millioningrossexpensesavingsasaresultofnon-customerfacingcostreductionsinrent
expense,payroll,taxesandbenefits.Wealsoanticipateincreasedcostsinadvertising,realestatetaxes,insurance,pensionandwages,notablyduetominimum
wagelawsandmeritincreases.Basedonthis,weareanticipatingnetsavingsrangingfrom$21millionto$24millionfrom2015expenseslevels.Webelieve
theseexpensesavings,whichwillbenefitSG&Aexpenseandgrossmargin,combinedwithlowercapitalspendingandinventorylevels,willpositivelyimpactour
fiscal2016cashflow.

OnJune1,2016,weenteredintoanAgreementofPurchaseandSale(PSA)forasale-leasebacktransactionwithanunrelatedparty.UnderthePSA,we
agreedtosellthreeretaildepartmentstorepropertiesforatleast$44.9millionandleasethembackforaperiodof20yearswiththreeoptional10-yearrenewal
terms.Thebasicrentpayableinconnectionwiththeleasewillbe$3.9million,subjecttoadjustmentforincreasesintheConsumerPriceIndex.Theclosingofthis
transactionissubjecttoaduediligencereviewbythepurchaser.

21


Giventhechallengingretailenvironmentandcontinueddeclinesinmalltraffictrends,onMay19,2016,werevisedourfiscal2016guidance.Weexpect
lossperdilutedshareinarangeof$0.95to$1.45.

Assumptionsreflectedinourfull-yearguidanceincludethefollowing:

Acomparablestoresalesperformancerangingfromflattoadecreaseof1%;

Agrossmarginraterangingfroma30-to50-basis-pointincreasefromthefiscal2015rateof34.7%;

AnSG&Aexpenseraterangingfroma40-to60-basis-pointdecreasefromthefiscal2015rateof33.3%;

Capitalexpendituresnottoexceed$40million,netofexternalcontributions;and

Anestimated20millionweightedaveragedilutedsharesoutstanding.

Results of Operations

ThefollowingtablesummarizeschangesinselectedoperatingindicatorsoftheCompany,illustratingtherelationshipofvariousincomeandexpense
itemstonetsalesfortherespectiveperiodspresented(componentsmaynotaddorsubtracttototalsduetorounding):

Netsales
Otherincome

Costsandexpenses:
Costsofmerchandisesold
Selling,generalandadministrative
Depreciationandamortization
Amortizationoflease-relatedinterests
Lossfromoperations
Interestexpense,net
Lossbeforeincometaxes
Incometaxbenefit
Netloss

THIRTEEN
WEEKSENDED
April30,
May2,
2016
2015

100.0%
2.9
102.9

100.0%
2.7
102.7

66.1
36.6
3.9
0.2
(3.9)
2.6
(6.4)

(6.4)%

66.2
35.8
3.6
0.2
(3.1)
2.5
(5.6)

(5.6)%

FirstQuarterof2016ComparedwithFirstQuarterof2015

Netsales:Netsalesinthefirstquarterof2016were$591.0million,comparedwith$610.9millioninthefirstquarterof2015,reflectingadecreaseof
3.3%.Comparablestoresalesdecreased2.9%intheperiodduetothechallengedretailenvironmentandcontinueddeclineinmalltraffictrends.

Thebestperformingmerchandisecategoriesinthefirstquarterof2016wereSoftHome,HardHome(bothincludedinHome)andMensSportswear
(includedinMensApparel).SoftHomebenefitedfromnotablesalesincreasesinbeddingandlinensaswellasadditionalpromotionalevents.SalesinHard
Homegrewasaresultofimprovedperformanceinbasichousewares,cookwareandluggage.MensSportswearprimarilybenefitedfromstrategicexpansionof
nationalbrandstoadditionaldoors.

MerchandisecategoriesthatwerechallengedintheperiodincludedAccessories,MensFurnishings(includedinMensApparel)andBetterSportswear
(includedinWomensApparel).Despitegrowthincertainbrandsandproductcategories,coldweatherandpoorperformingmerchandisehamperedsalesin

22


Accessories.MensFurnishingssalesdeclinedduetounfavorableweathertrends.BetterSportswearwasimpactedbyunfavorablesalesincertainbrandsand
productassortments;weintendtocontinuedirectinginventoryinvestmenttobrandsthatareperformingwell.

Otherincome:Otherincome,whichincludesincomefromrevenuesreceivedunderourcreditcardprogramagreement,miscellaneousrevenue
departmentsandgiftandmerchandisereturncardbreakage,was$17.4millioninthefirstquarterof2016ascomparedwith$16.3millioninthefirstquarterof
2015.Theincreaseprimarilyreflectsincreasedrevenuesfromourproprietarycreditcardoperations.

Costsandexpenses:Grossmargininthefirstquarterof2016decreased$6.4millionto$200.1millionascomparedwith$206.5millioninthe
comparableprioryearperiod,primarilyduetothedecreasedsalesvolumeinthecurrentperiod.Grossmarginasapercentageofnetsalesincreased6basispoints
to33.9%inthefirstquarterof2016from33.8%inthecomparableprioryearperiod.Thisrateincreasewasprimarilyduetoreductionsindeliveryexpensewhich
werepartiallyoffsetbyhigherdistributioncentercostsforouromnichanneloperations.

SG&Aexpenseinthefirstquarterof2016decreased$2.5millionto$216.2millionascomparedwith$218.7millioninthefirstquarterof2015.This
reductionwaslargelyduetodecreasedstoreexpenses,partiallyoffsetbyincreasedadvertisingexpensesandmedicalclaims.Thecurrentperiodexpenserate,
36.6%ofnetsales,increased78basispointsfromthatoftheprioryearperiodasaresultofthedecreasedsalesvolumeintheperiod.

Depreciationandamortizationexpenseandamortizationoflease-relatedinterestsincreased$1.1millionto$24.2millioninthefirstquarterof2016from
$23.1millioninthefirstquarterof2015.

Interestexpense,net:Netinterestexpensewas$15.1millioninthefirstquarterof2016ascomparedwith$15.2millioninthefirstquarterof2015.
The$0.1milliondecreaseprimarilyreflectsareducedweightedaverageinterestrate,partiallyoffsetbyhigherborrowinglevels.

Incometaxbenefit:Theeffectiveincometaxrateinthefirstquarterineachof2016and2015largelyreflectsourvaluationallowancepositionagainst
allnetdeferredtaxassets.The$0.1millionincometaxbenefitinthefirstquarterof2016includesa$0.6millionbenefitfromthelossoncontinuingoperations
whichwaspartiallyoffsetbytherecognitionofdeferredtaxliabilitiesassociatedwithindefinite-livedassets.The$0.2millionincometaxbenefitinthefirst
quarterof2015includesa$0.6millionbenefitfromthelossoncontinuingoperationswhichwaspartiallyoffsetbytherecognitionofdeferredtaxliabilities
associatedwithindefinite-livedassets.

Seasonality

Ourbusiness,likethatofmostretailers,issubjecttoseasonalfluctuations,withthemajorportionofsalesandincomerealizedduringthesecondhalfof
eachfiscalyear,whichincludestheholidayseason.Duetothefixednatureofcertaincosts,SG&Aexpenseistypicallyhigherasapercentageofnetsalesduring
thefirsthalfofeachfiscalyear.Wetypicallyfinanceworkingcapitalincreasesinthesecondhalfofeachfiscalyearthroughadditionalborrowingsunderour
$830.0millionseniorsecuredSecondAmendedandRestatedLoanandSecurityAgreement(theSecondAmendedRevolvingCreditFacility)thatexpireson
December12,2018(seeLiquidityandCapitalResources,below,forfurtherdiscussion).

Becauseoftheseasonalityofourbusiness,resultsforanyquarterarenotnecessarilyindicativeofresultsthatmaybeachievedforafullfiscalyear.

Liquidity and Capital Resources

AtApril30,2016,wehad$7.8millionincashandcashequivalentsand$244.0millionavailableunderourSecondAmendedRevolvingCreditFacility
(beforetakingintoaccounttheminimumborrowingavailabilitycovenantundersuchfacility).Excessavailabilitywas$368.3millionasofthecomparableprior
yearperiod.Theunfavorableexcessavailabilitycomparisonprimarilyreflectsincreaseddirectborrowingstosupportouroperationsand,inpart,torepayour
mortgagefacilityduringfiscal2015.

23


Typically,cashflowsfromoperationsareimpactedbytheeffectonsalesof(1)consumerconfidence,(2)weatherinthegeographicmarketsservedbythe
Company,(3)generaleconomicconditionsand(4)competitiveconditionsexistingintheretailindustry.Adownturninanysinglefactororacombinationof
factorscouldhaveamaterialadverseimpactuponourabilitytogeneratesufficientcashflowstooperateourbusiness.Whilethecurrenteconomicuncertainty
affectsourassessmentofshort-termliquidity,weconsiderourresources(including,butnotlimitedto,cashflowsfromoperationssupplementedbyborrowings
undertheSecondAmendedRevolvingCreditFacility)adequatetosatisfyourcashneedsforatleastthenext12months.

OurprimarysourcesofworkingcapitalarecashflowsfromoperationsandborrowingsunderourSecondAmendedRevolvingCreditFacility,which
providesforupto$830.0millioninborrowings(limitedbyamountsavailablepursuanttoaborrowingbasecalculation).Ourbusinessfollowsaseasonalpattern;
workingcapitalfluctuateswithseasonalvariations,reachingitshighestlevelinOctoberorNovembertofundthepurchaseofmerchandiseinventoriespriortothe
holidayseason.Theseasonalityofourbusinesshistoricallyprovidesgreatestcashflowfromoperationsduringtheholidayseason,withfiscalfourthquarternet
salesgeneratingthestrongestprofitsofourfiscalyear.Asholidaysalessignificantlyreduceinventorylevels,thisreduction,combinedwithnetincome,
historicallyprovidesuswithstrongcashflowfromoperationsattheendofourfiscalyear.

Cashprovidedby(usedin)ouroperating,investingandfinancingactivitiesissummarizedasfollows:

(Dollarsinmillions)

THIRTEEN
WEEKSENDED
April30,
May2,
2016
2015

Operatingactivities
$
12.3
$
(17.8)
Investingactivities
(12.6)
(24.4)
Financingactivities
1.3
42.2

Netcashprovidedbyoperatingactivitieswas$12.3millioninthefirstquarterof2016,whilenetcashusedinoperatingactivitiestotaled$17.8millionin
thefirstquarterof2015.Theincreaseincashflowprimarilyreflectsa$26.0millionfavorablechangeincashflowfromworkingcapital.Theimprovementincash
flowfromworkingcapitalwaslargelyduetofavorablefluctuationsof$9.4millionincashflowsfromprepaidexpensesandothercurrentassetsand$8.2millionin
cashflowsfromaccountspayable.Inaddition,cashflowsfromlong-termliabilitieschangedfavorablyby$6.6million.

Netcashusedininvestingactivitieswas$12.6millionand$24.4millioninthefirstquartersof2016and2015,respectively,reflectingaplanneddecrease
incapitalexpenditures.Capitalexpenditurestotaled$12.6millionand$24.4millioninthefirstquarterineachof2016and2015,respectively;theseexpenditures
donotreflectreductionsforexternalcontributions(primarilyleaseholdimprovementandfixtureallowancesreceivedfromlandlordsorvendors)of$7.5million
and$0.8millioninthefirstquarterineachof2016and2015,respectively.Weanticipateourfiscal2016capitalexpenditureswillnotexceed$67.3million
(excludingexternalcontributionsof$27.3million,reducinganticipatednetcapitalinvestmentsto$40.0million).

Netcashprovidedbyfinancingactivitieswas$1.3millionand$42.2millioninthefirstquartersof2016and2015,respectively,reflectingalower
revolverincreaseinthefirstquarterof2016.Thelowerrevolverincreasewasprimarilyduetoreducedcapitalexpendituresandthefavorablechangeinworking
capital.

Asidefromplannedcapitalexpenditures,theCompanysprimarycashrequirementswillbetoservicedebtandfinanceworkingcapitalincreasesduring
peaksellingseasons.

24


Critical Accounting Policies and Estimates

ThepreparationoffinancialstatementsinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesrequiresustomakeestimatesand
assumptionsthataffectreportedamountsanddisclosureofcontingentassetsandliabilities.Therehavebeennosignificantchangesinthecriticalaccounting
policiesandestimatesdescribedinourAnnualReportonForm10-KfortheyearendedJanuary30,2016.

Recently Adopted Accounting Standards

RecentlyadoptedaccountingstandardsarediscussedinNote1totheConsolidatedFinancialStatements.

Forward-Looking Statements

Certaininformationincludedinthisreport(aswellasothercommunicationsmadeortobemadebytheCompany)andothermaterialsfiledortobefiled
bytheCompanywiththeSecuritiesandExchangeCommissioncontainstatementsthatareforward-lookingwithinthemeaningofthePrivateSecuritiesLitigation
ReformActof1995.Suchforward-lookingstatements,whichmaybeidentifiedbywordsorphrasessuchasmay,could,would,will,plan,expect,
believe,anticipate,estimate,project,intend,lookforwardtoorothersimilarexpressions,includingtheCompanysfiscal2016guidanceand
statementsregardingenhancementstoouronlineandmobileplatforms,anticipatedexpensesavings,futurecashflows,inventorymanagementinitiativesand
projectedcapitalexpenditures,involveimportantrisksanduncertaintiesthatcouldsignificantlyaffectresultsinthefutureand,accordingly,suchresultsmaydiffer
fromthoseexpressedinanyforward-lookingstatementsmadebyoronbehalfoftheCompany.Factorsthatcouldcausesuchdifferencesinclude,butarenot
limitedto,risksrelatedtoretailbusinessesgenerally;asignificantandprolongeddeteriorationofgeneraleconomicconditionswhichcouldnegativelyimpactthe
Company,includingthepotentialwrite-downofthecurrentvaluationofintangibleassetsanddeferredtaxes;risksrelatedtotheCompanysproprietarycreditcard
program;potentialincreasesinpensionobligations;consumerspendingpatterns,debtlevels,andtheavailabilityandcostofconsumercredit;additional
competitionfromexistingandnewcompetitorsorchangesinthecompetitiveenvironment;inflation;deflation;changesinthecostsoffuelandotherenergyand
transportationcosts;weatherconditionsthatcouldnegativelyimpactsales;uncertaintiesassociatedwithexpandingorremodelingexistingstores;theabilityto
attractandretainqualifiedmanagement;thedependenceuponrelationshipswithvendorsandtheirfactors;adatasecuritybreachorsystemfailure;theabilityto
reduceorcontrolSG&Aexpenses,includinginitiativestoreduceexpensesandimproveefficiency;operationaldisruptions;unsuccessfulmarketinginitiatives;the
abilitytoexpandcapacityandimproveefficiencythroughtheCompanysneweCommercefulfillmentcenter;changesin,orthefailuretosuccessfullyimplement,
ourkeystrategies,includinginitiativestoimproveourmerchandising,marketingandoperations;adverseoutcomesinlitigation;theincurrenceofunplanned
capitalexpenditures;theabilitytoobtainfinancingforworkingcapital,capitalexpendituresandgeneralcorporatepurposes;theimpactofregulatoryrequirements
includingtheHealthCareReformActandtheDodd-FrankWallStreetReformandConsumerProtectionAct;theinabilityorlimitationsontheCompanysability
tofavorablyadjustthevaluationallowanceondeferredtaxassets;andthefinancialconditionofmalloperators.AdditionalfactorsthatcouldcausetheCompanys
actualresultstodifferfromthosecontainedintheseforward-lookingstatementsarediscussedingreaterdetailunderItem1AoftheCompanysAnnualReporton
Form10-Kforfiscal2015filedwiththeSecuritiesandExchangeCommission.

25


ITEM3.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISK

Market Risk and Financial Instruments

Therewerenomaterialchangesinourexposures,riskmanagementstrategies,orhedgingpositionssinceJanuary30,2016.Forfurtherinformation,refer
toItem7Aofourfiscal2015AnnualReportonForm10-K.

ITEM4.CONTROLSANDPROCEDURES

EvaluationofDisclosureControlsandProcedures

Wemaintaindisclosurecontrolsandproceduresthataredesignedtoensurethatinformationrequiredtobedisclosedinreportsfiledpursuanttothe
SecuritiesExchangeActof1934,asamended(theExchangeAct),isrecorded,processed,summarizedandreportedwithinthetimeperiodsspecifiedinthe
SecuritiesandExchangeCommissionsrulesandforms,andthatsuchinformationisaccumulatedandcommunicatedtomanagement,includingourChief
ExecutiveOfficerandChiefFinancialOfficer,asappropriate,toallowtimelydecisionsregardingrequireddisclosure.Ourmanagement,includingourChief
ExecutiveOfficerandChiefFinancialOfficer,evaluatedtheeffectivenessofourdisclosurecontrolsandprocedures(asdefinedinRules13a-15(e)and15d15(e)oftheExchangeAct)asoftheendoftheperiodcoveredbythisreportand,basedonthisevaluation,concludedthatourdisclosurecontrolsandprocedures
areeffective.

ChangesinInternalControloverFinancialReporting

TherewerenochangestoourinternalcontrolsoverfinancialreportingthatoccurredduringthethirteenweeksendedApril30,2016thathavematerially
affected,orarereasonablylikelytomateriallyaffect,ourinternalcontroloverfinancialreporting.

26


PARTII:OTHERINFORMATION

ITEM6.EXHIBITS

(a)ThefollowingexhibitsarefiledpursuanttotherequirementsofItem601ofRegulationS-K:

10.1
AgreementofPurchaseandSalebetweenUnitedTrustFundLimitedPartnership,asPurchaser,andBonstoresRealtyOne,LLCandBonstores
RealtyTwo,LLC,asSeller(incorporatedbyreferencetoExhibit10.1totheCurrentReportonForm8-KfiledonJune1,2016)
31.1
CertificationofKathrynBufano
31.2
CertificationofNancyA.Walsh
32.1*
CertificationPursuanttoRules13a-14(b)and15d-14(b)oftheSecuritiesExchangeActof1934
101.INS
XBRLInstanceDocument
101.SCH
XBRLTaxonomyExtensionSchemaDocument
101.CAL
XBRLTaxonomyExtensionCalculationLinkbaseDocument
101.DEF
XBRLTaxonomyExtensionDefinitionLinkbaseDocument
101.LAB
XBRLTaxonomyExtensionLabelLinkbaseDocument
101.PRE
XBRLTaxonomyExtensionPresentationLinkbaseDocument

*Furnishedherewith.

27


SIGNATURES

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theRegistranthasdulycausedthisreporttobesignedonitsbehalfbythe
undersignedthereuntodulyauthorized.

THEBON-TONSTORES,INC.

DATE:
June8,2016
BY:
/s/KathrynBufano
KathrynBufano
Presidentand
ChiefExecutiveOfficer
(PrincipalExecutiveOfficer)

DATE:
June8,2016
BY:
/s/NancyA.Walsh
NancyA.Walsh
ExecutiveVicePresident
ChiefFinancialOfficer
(PrincipalFinancialOfficer)

DATE:
June8,2016
BY:
/s/MichaelW.Webb
MichaelW.Webb
SeniorVicePresident
ChiefAccountingOfficer
(PrincipalAccountingOfficer)

28

EXHIBIT31.1

CERTIFICATIONOFKATHRYNBUFANO

I,KathrynBufano,certifythat:

1)IhavereviewedthisQuarterlyReportonForm10-QofTheBon-TonStores,Inc.;

2)Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatements
made,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3)Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancial
condition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4)Theregistrantsothercertifyingofficer(s)andIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeAct
Rules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantand
have:

a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethat
materialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduring
theperiodinwhichthisreportisbeingprepared;

b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,to
providereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordance
withgenerallyacceptedaccountingprinciples;

c) Evaluatedtheeffectivenessoftheregistrantsdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthe
disclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) Disclosedinthisreportanychangeintheregistrantsinternalcontroloverfinancialreportingthatoccurredduringtheregistrantsmostrecentfiscalquarter
(theregistrantsfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrants
internalcontroloverfinancialreporting;and

5)Theregistrantsothercertifyingofficer(s)andIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,tothe
registrantsauditorsandtheauditcommitteeoftheregistrantsboardofdirectors(orpersonsperformingtheequivalentfunctions):

a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelyto
adverselyaffecttheregistrantsabilitytorecord,process,summarizeandreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrantsinternalcontrolover
financialreporting.

DATE:June8,2016
By:
/s/KathrynBufano
KathrynBufano
PresidentandChiefExecutiveOfficer

EXHIBIT31.2

CERTIFICATIONOFNANCYA.WALSH

I,NancyA.Walsh,certifythat:

1)IhavereviewedthisQuarterlyReportonForm10-QofTheBon-TonStores,Inc.;

2)Basedonmyknowledge,thisreportdoesnotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatements
made,inlightofthecircumstancesunderwhichsuchstatementsweremade,notmisleadingwithrespecttotheperiodcoveredbythisreport;

3)Basedonmyknowledge,thefinancialstatements,andotherfinancialinformationincludedinthisreport,fairlypresentinallmaterialrespectsthefinancial
condition,resultsofoperationsandcashflowsoftheregistrantasof,andfor,theperiodspresentedinthisreport;

4)Theregistrantsothercertifyingofficer(s)andIareresponsibleforestablishingandmaintainingdisclosurecontrolsandprocedures(asdefinedinExchangeAct
Rules13a-15(e)and15d-15(e))andinternalcontroloverfinancialreporting(asdefinedinExchangeActRules13a-15(f)and15d-15(f))fortheregistrantand
have:

a) Designedsuchdisclosurecontrolsandprocedures,orcausedsuchdisclosurecontrolsandprocedurestobedesignedunderoursupervision,toensurethat
materialinformationrelatingtotheregistrant,includingitsconsolidatedsubsidiaries,ismadeknowntousbyotherswithinthoseentities,particularlyduring
theperiodinwhichthisreportisbeingprepared;

b) Designedsuchinternalcontroloverfinancialreporting,orcausedsuchinternalcontroloverfinancialreportingtobedesignedunderoursupervision,to
providereasonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordance
withgenerallyacceptedaccountingprinciples;

c) Evaluatedtheeffectivenessoftheregistrantsdisclosurecontrolsandproceduresandpresentedinthisreportourconclusionsabouttheeffectivenessofthe
disclosurecontrolsandprocedures,asoftheendoftheperiodcoveredbythisreportbasedonsuchevaluation;and

d) Disclosedinthisreportanychangeintheregistrantsinternalcontroloverfinancialreportingthatoccurredduringtheregistrantsmostrecentfiscalquarter
(theregistrantsfourthfiscalquarterinthecaseofanannualreport)thathasmateriallyaffected,orisreasonablylikelytomateriallyaffect,theregistrants
internalcontroloverfinancialreporting;and

5)Theregistrantsothercertifyingofficer(s)andIhavedisclosed,basedonourmostrecentevaluationofinternalcontroloverfinancialreporting,tothe
registrantsauditorsandtheauditcommitteeoftheregistrantsboardofdirectors(orpersonsperformingtheequivalentfunctions):

a) Allsignificantdeficienciesandmaterialweaknessesinthedesignoroperationofinternalcontroloverfinancialreportingwhicharereasonablylikelyto
adverselyaffecttheregistrantsabilitytorecord,process,summarizeandreportfinancialinformation;and

b) Anyfraud,whetherornotmaterial,thatinvolvesmanagementorotheremployeeswhohaveasignificantroleintheregistrantsinternalcontrolover
financialreporting.

DATE:June8,2016
By:
/s/NancyA.Walsh
NancyA.Walsh
ExecutiveVicePresident
ChiefFinancialOfficer
(PrincipalFinancialOfficer)

Exhibit32.1

CERTIFICATIONPURSUANTTO
18U.S.C.SECTION1350
ASADOPTEDPURSUANTTO
SECTION906OFTHESARBANES-OXLEYACTOF2002

InconnectionwiththeQuarterlyReportofTheBon-TonStores,Inc.onForm10-QfortheperiodendedApril30,2016,asfiledwiththeSecuritiesand
ExchangeCommission(theReport),eachoftheundersignedofficersofTheBon-TonStores,Inc.,certifiespursuantto18U.S.C.Section1350,that,tohis/her
respectiveknowledge:

1) TheReportfullycomplieswiththerequirementsofsection13(a)or15(d)oftheSecuritiesExchangeActof1934;and

2) TheinformationcontainedintheReportfairlypresents,inallmaterialrespects,thefinancialconditionandresultsofoperationsofTheBon-TonStores,Inc.

DATE:June8,2016
By:
/s/KathrynBufano
KathrynBufano
PresidentandChiefExecutiveOfficer

By:
/s/NancyA.Walsh
NancyA.Walsh
ExecutiveVicePresident
ChiefFinancialOfficer

AsignedoriginalofthiswrittenstatementhasbeenprovidedtoTheBon-TonStores,Inc.andwillberetainedbyTheBon-TonStores,Inc.andfurnishedtothe
SecuritiesandExchangeCommissionoritsstaffuponrequest.

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