The pact also calls for additional protections for certain loyalty card customers’ credit lines, revises the compensation Bon-Ton receives for certain credit card sales and establishes that it will share certain losses with HSBC, the news release states.
The changes likely will cost Bon-Ton between $5 million and $9 million annually, the company said.
Bud Bergen, president and chief executive of Bon-Ton, said the company was pleased to continue working with HSBC.
“We consider our proprietary credit card program to be a key component of our retailing concept, and we place a high degree of importance on our relationship with our loyal customers,” Bergen said in a statement.
The agreement goes into effect Jan. 1, 2009 and lasts through June 20, 2012.
The owner of Elder-Beerman Stores will announce second quarter earnings on Aug. 20.
About the Author