Jan 29 Apparel and home furnishings retailer
Bon-Ton Stores Inc (BONT.O) said it would cut about 1,150 jobs
and eliminate 2008 bonuses for its senior executives in a bid
to control costs amid a worsening economy.
Bon-Ton said it would take a one-time charge of $3.0
million related to the cuts. The reduction amounts to a 3.5
percent cut to the company's workforce according to Reuters
The York, Pennsylvania-based retailer also said it will
eliminate merit-based wage increases across the entire company
for 2009, and suspend employer contributions to the company's
401(k) employee retirement plan.
The company, which operates the Bon-Ton, Elder-Beerman,
Boston Store and Carson Pirie Scott chains, will also reduce
capital spending to $40 million, net of landlord contributions.
As a result of these cost-savings initiative, it expects to
report an annual increase of $70 million to its income from
The company also said it expects to take a charge at the
end of its current fiscal year, related to a strategic review
and the expected reduction in the value of its intangible,
long-lived and tax assets.
Shares of the company were trading down 1 percent at $1.23
Thursday afternoon on Nasdaq.
(Reporting by Mihir Dalal in Bangalore; Editing by Anthony