Coming Soon: The First Department Store Bankruptcy Since the Great Recession?

Coming Soon: The First Department Store Bankruptcy Since the Great Recession?

Department stores have been particularly hard hit by changes in consumer behavior over the past few years. However, one of the curious things about the so-called "retail apocalypse" is that not a single department store chain has filed for bankruptcy since the Great Recession. Even the weakest chains have managed to stay alive, thanks to a combination of cost cuts, store closures, and asset sales.

However, that could be about to change. Regional department store operator Bon-Ton Stores (NASDAQ: BONT) is on the ropes following yet another terrible quarterly earnings report. Bon-Ton's dire struggles could spell opportunity for larger rivals like Macy's (NYSE: M) and J.C. Penney (NYSE: JCP).

Bon-Ton Stores entered 2017 in a weak position, and its hopes of recovery dwindled over the course of the year. It started off on the wrong foot, with a dreadful 8.8% comp sales decline in the first quarter. Comp sales then declined 6.1% in the second quarter.

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Source: Fool.com