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EXHIBIT 99
NEWS RELEASE FOR: THE BON*TON STORES, INC.
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THE BON-TON STORES PRESIDENT AND CHIEF EXECUTIVE OFFICER RETIRES
--TIM GRUMBACHER, CHAIRMAN OF THE BOARD, REASSUMES
CHIEF EXECUTIVE OFFICER POSITION--
York, PA, June 27, 2000 -- The Bon-Ton Stores, Inc. (Nasdaq: BONT)
today announced that Heywood Wilansky, President, Chief Executive Officer and
Director, has taken early retirement from his position effective immediately.
Tim Grumbacher, Chairman of the Board of Directors, has reassumed the position
of Chief Executive Officer, which he previously held. Under the new management
structure, Michael L. Gleim will continue as Vice Chairman and Chief Operating
Officer and Frank Tworecke will continue as Vice Chairman and Chief
Merchandising Officer.
The Company is also realigning senior management. One of the four
current Senior Vice President, General Merchandise Manager positions and the
position of Senior Vice President, Human Resources will be eliminated. The
General Merchandise Manager duties will be absorbed by the three remaining
Senior Vice Presidents, General Merchandise Managers. The duties of Senior Vice
President, Human Resources will be reassigned within the Company.
Tim Grumbacher, Chairman of the Board of The Bon-Ton Stores, Inc.,
stated, "We appreciate the many contributions Heywood made to the Company during
the past five years. We will continue to implement our strategic initiatives and
believe this realignment will result in a more focused management team. The
Board and I have the utmost confidence in the ability of this group to
successfully lead the Company to improved profitability."
The Company further stated that, as a result of Mr. Wilansky's
departure and the management restructuring, it will incur a one-time after-tax
charge in the second quarter ending July 29, 2000 between $4.2 million and $4.5
million, or $0.28 to $0.30 per share. Excluding the one-time restructuring
charge, the Company stated that it expects to incur a second quarter loss of
$0.07 to $0.09 per share based on currently available information, which
includes the previously announced one-time expense of $0.02 per share related to
the reduction in force. The Company indicated that the acceleration of expenses
into the second quarter which would have otherwise been recognized in later
quarters will result in a net charge for the full year in the range of $2.7
million to $3.0 million, or $0.18 to $0.20 per share on a fully diluted basis.
The Bon-Ton Stores, Inc. operates 72 department stores in secondary
markets in Pennsylvania, New York, New Jersey, Maryland, Connecticut,
Massachusetts, New Hampshire, Vermont and West Virginia. The stores carry a
broad assortment of brand-name fashion apparel and accessories for women, men
and children, as well as home furnishings.
Statements in this press release, other than statements of historical
information, are forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Although the Company believes that the expectations reflected in such
forward-looking statements are based on reasonable assumptions, it can give no
assurance that its expectations will be achieved. Such statements include known
and unknown risks which may cause the Company's actual results in future periods
to differ materially from expected results, including, but not limited to, risks
related to retail businesses generally, uncertainties associated with opening
new stores or expanding or remodeling existing stores, and dependence on certain
geographic markets. Additional factors that could cause the Company's actual
results to differ from those contained in forward-looking statements are
discussed in greater detail in periodic reports filed by the Company with the
Securities and Exchange Commission which the Company urges investors to
consider.
