The Bon-Ton Stores, Inc. Announces Hamilton, Ohio Store Closing

YORK, Pa.--(BUSINESS WIRE)--The Bon-Ton Stores, Inc. (NASDAQ: BONT) today announced that it will close its 167,900 square foot Elder-Beerman store in Hamilton, Ohio. The leasehold interest in the Hamilton location was acquired by Bon-Ton in 2003 as part of the Elder-Beerman acquisition. The lease, which is expiring March 31, 2009, has not been renewed. The closing will impact approximately 75 associates. The closing costs for the location will not be material. The location is scheduled to close by mid-March 2009.

Bud Bergren, President and Chief Executive Officer, commented, “The Company continually reviews the performance of its assets, and following a review of the Hamilton location, we made the decision to close the store. We sincerely appreciate the loyalty and dedication of our associates and the support of our Hamilton customers. We remain committed to our customers in this community and encourage them to visit our Elder-Beerman store in the Middletown Mall, which continues to be a very good location for the Company.”

The affected associates at the Hamilton location will be provided an opportunity to consider available opportunities at the Middletown or Dayton stores or receive career transition benefits, including severance according to established practices and state employment service support.

The Bon-Ton Stores, Inc. operates 281 stores, including twelve furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger’s and Younkers nameplates and, under the Parisian nameplate, stores in the Detroit, Michigan area. The stores offer a broad assortment of brand-name fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. For further information, please visit the investor relations section of the Company’s website at http://investors.bonton.com.

Certain information included in this press release contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which may be identified by words such as “may,” “could,” “will,” “plan,” “expect,” “anticipate,” “estimate,” “project,” “intend” or other similar expressions, involve important risks and uncertainties that could significantly affect results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of the Company. Factors that could cause such differences include, but are not limited to, risks related to retail businesses generally; a significant and prolonged deterioration of general economic conditions which could negatively impact the Company, including the potential write-down of the current valuation of intangible assets and deferred taxes; consumer spending patterns and debt levels; additional competition from existing and new competitors; inflation; changes in the costs of fuel and other energy and transportation costs; weather conditions that could negatively impact sales; uncertainties associated with opening new stores or expanding or remodeling existing stores; the ability to attract and retain qualified management; the dependence upon vendor relationships; the ability to reduce SG&A expenses and the ability to obtain financing for working capital, capital expenditures and general corporate purposes. Additional factors that could cause the Company’s actual results to differ from those contained in these forward-looking statements are discussed in greater detail under Item 1A of the Company’s Form 10-K filed with the Securities and Exchange Commission.