Herberger's closed its doors in 2020 after 65 years in business. The company's parent, Ascena Retail Group, filed for bankruptcy.
The closure was a significant blow to the community, with many employees and customers affected. Herberger's was a beloved institution in Minnesota.
Ascena Retail Group had been struggling financially for some time, with declining sales and increased competition from online retailers. The company's bankruptcy filing was a result of these challenges.
The closure of Herberger's left a void in the retail landscape, but it also presented an opportunity for revival.
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Herberger's Closure
Herberger's owner, Bon-Ton Stores, Inc., is closing 47 stores across 17 states, but the Alexandria Herberger's will remain in operation.
The company filed for bankruptcy and has a cash balance of no more than $7 million, making it difficult to stay afloat during a slow quarter for retailers.
As part of its turnaround plan, Bon-Ton is reorganizing its store footprint to drive improved performance and strengthen its capital structure.
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The only Minnesota store on the list is the Herberger's Clearance Center in Maplewood, a suburb of St. Paul.
No North Dakota stores are slated for closure.
Nine Wisconsin stores will be closing this year, including Younkers stores in Superior, Wausau, Appleton, Fond Du Lac, Manitowoc, and Marinette, as well as the Boston Store in Beaver Dam and the Boston Store Clearance Center in Milwaukee.
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Background and History
Herberger's was founded in 1927 by G.R. "Bob" Herberger in Osakis, Minnesota.
The first store was opened in 1927, marking the beginning of the Herberger's brand.
G.R. Herberger's, Inc. was incorporated in 1943 to expand into other communities, and by 1972, it had grown to 11 stores in four states.
The company's headquarters was located in downtown St. Cloud, Minnesota, by 1972.
G.R. Herberger's, Inc. merged with Proffitt's Inc. in 1997 in a stock deal valued at approximately $160 million, which is equivalent to around $290 million in 2024.
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Herberger's eventually became part of the Northern Department Store Group, an assortment of store locations initially acquired by Proffitt's Inc.
The Northern Department Store Group included Carson Pirie Scott & Company, which was acquired by Proffitt's Inc.
Saks Incorporated acquired Proffitt's Inc., and as a result, Herberger's became part of the corporation.
The acquisition of Saks Fifth Avenue led to Saks Incorporated evolving into Saks Incorporated.
In 2005, Saks announced the sale of Herberger's and its other Northern Department Store Group stores to Bon-Ton Stores in a $1.1 billion deal.
The sale was completed on March 6, 2006, marking the end of Herberger's ownership under Saks Incorporated.
Bon-Ton announced the closure of all 267 stores, including Herberger's locations, on April 17, 2018.
The closure was a result of an auction won by two liquidators, Great American Group and Tiger Capital Group, with a bid estimated to be worth $775.5 million.
The last Herberger's location closed on August 31, 2018.
The Herberger's website returned online with the text "Herberger's is coming back" in 2018, coinciding with the last location closing.
CSC Generations purchased Bon Ton, Inc. and its associated brands and customer lists, relaunching Herberger's.
The first potential Herberger's location to reopen was likely to be in Rochester, Minnesota, as announced on October 1, 2018.
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Financial Issues
Bon-Ton filed for Chapter 11 bankruptcy in January due to declining sales and burdensome debt.
The company cited struggling sales as a major factor in its financial woes.
Bon-Ton was operating 260 stores in 24 states when it filed for bankruptcy, with 250 of those stores located in the Northeast and Midwest.
After failing to find investors willing to buy the company, its assets were auctioned earlier this week, resulting in a buyout by liquidators.
Liquidation firms Great American Group and Tiger Capital Group were the highest bidders, and no one stepped forward to outbid them and continue store operations.
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Revival Plans
CSC's CEO Justin Yoshimura is excited about reviving the Herberger's brand in Minnesota.
They're evaluating a few locations outside of the metro area, including Albert Lea, Alexandria, Baxter, Mankato, New Ulm, Rochester, St. Cloud, and Willmar.
Their first Minnesota store will likely be in Rochester, but a lease hasn't been signed yet.
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New stores will have a different format, ranging from 10,000 to 100,000 square feet, compared to the old Bon-Ton stores which were 40,000 to 250,000 square feet.
They're placing orders with former Bon-Ton vendors, including ones that Bon-Ton backed out of when they filed for bankruptcy.
The company is shifting its merchandise mix away from apparel and towards categories where customers want to experience products in person, like mattresses.
CSC is known for being experimental and open to new ideas, which might lead to some interesting changes in their stores.
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Frequently Asked Questions
Can you order from herbergers online?
Yes, you can order from Herberger's online, as the brand has relaunched as an e-commerce store at Herbergers.com. Check out their website for a wide range of products and shopping options.
Who owns herbergers?
Herberger's is owned by BrandX, a subsidiary of Bonton Holdings, Inc.
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