The Bon-Ton Stores, Inc. Announces Real Estate Initiatives

The Bon-Ton Stores, Inc.

today announced it will close its Elder-Beerman stores in the Huntington Mall in Huntington, West Virginia and the Lima Mall in Lima, Ohio. The Company will not renew these leases, which terminate January 31, 2016. Additionally, the Company announced the closing of its Bon-Ton store in the Carousel Center in Syracuse, New York upon its scheduled February 28, 2016 lease termination. The closings will impact 58, 51 and 43 associates at the Huntington Mall, Lima Mall and Carousel Center locations, respectively. Bon-Ton acquired the leasehold interests in the Carousel Center store as part of its Chappell's acquisition in 1994 and the Huntington Mall and Lima Mall stores as part of its Elder-Beerman acquisition in 2003. The Company does not expect costs associated with the closing of the locations to be material. The stores will close at the end of their lease terms. Kathryn Bufano, President and Chief Executive Officer, commented, "We actively review our store portfolio to ensure efficient asset utilization. While decisions to close stores are not taken lightly, closings are part of ongoing real estate initiatives in which we strategically conclude operations at underperforming locations, enabling us to redirect capital into more profitable and productive assets. As a result of our performance reviews, we felt it prudent to close the aforementioned stores. We are very grateful for the dedicated Huntington, Lima and Carousel Center store associates and are committed to providing assistance to these associates." The affected associates in the Huntington Mall, Lima Mall and Carousel Center stores will be offered the opportunity to interview for available positions at other Elder-Beerman or Bon-Ton stores, or receive career transition benefits, including severance, according to established practices and state employment service support. The Bon-Ton Stores, Inc., with corporate headquarters in York, Pennsylvania and Milwaukee, Wisconsin, operates 270 stores, which includes nine furniture galleries and four clearance centers, in 26 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates. The stores offer a broad assortment of national and private brand 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.