Alliance Data Systems Corp. has agreed to buy the $475 million private-label credit card portfolio of Bon-Ton Stores Inc., a 275-store chain with outlets in 23 states.
Dallas-based Alliance Data in February signed an agreement to manage Bon-Ton's card portfolio and said it planned to acquire the portfolio later this year (see story).
Store brands Bon-Ton operates include Bergner's, Boston Stores, Carson's and Parisian, and merchandise spans apparel, cosmetics and home furnishings, Alliance said in the release.
The acquired portfolio has "only a modest level of delinquencies," Alliance Data said in its June 19 announcement, noting that it plans to offer credit cardholders rewards and other incentives to drive repeat purchases through Bon-Ton stores as well as its mobile and Web channels.
The deal is scheduled to close during the third quarter of this year.