Bon-Ton Stores is undergoing a C-level shakeup as it struggles to turn its financial fortunes around. Kathryn Bufano, current President and CEO at Bon-Ton, will step down from her role when her contract expires on August 25, 2017. William Tracy, the retailer’s current COO, will succeed to those positions after a transition period.
The department store, which has been unprofitable for the past six years, posted a $63.4 million loss in 2016, an increase over the $57 million loss sustained the previous year.
Additionally, Chad Stauffer, one of the brand’s current General Merchandise Managers, has been named EVP and Chief Merchandising Officer, reporting to the CEO. In this role, Stauffer will be responsible for leading the company’s merchandising strategy.
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In Bufano’s three years as President and CEO, Bon-Ton instituted its “Your Store, Your Style” rebranding initiative, which included introducing new brands to its merchandise assortment, updating its customer rewards programs and launching a localization strategy.
The transition announcement comes a few days after the company’s Chairman of the Board of Directors, Tim Grumbacher, said he would retire effective May 13, 2017. Grumbacher has been a member of the Board of Directors since 1967 and served as Chairman of the Board since 1991. He also served as CEO of Bon-Ton from 1985 to 1995, and held various senior management positions within the company since 1977.
Grumbacher will continue to serve as Chairman Emeritus and Advisor to the CEO. Debra K. Simon, a current member of the Board of Directors and Grumbacher’s wife, has been elected to succeed him as Chairman of the Board, also effective May 13, 2017.
Grumbacher commented on the CEO transition, noting that Tracy is a “proven leader with more than 40 years of retail experience in the areas of operations, supply chain management and logistics for national department stores,” he said in a statement. “We are confident that Bill will be a successful leader based on his in-depth knowledge of the retail industry, his operational expertise and his understanding of the Bon-Ton business. We look forward to working with Bill as we continue to drive forward on our strategic initiatives and position the brand for long term success.”
Prior to joining Bon-Ton in July 2015, Tracy held various management positions at Hudson’s Bay Company, including EVP of Supply Chain, Logistics and Omnichannel Fulfillment, and Global Sourcing, and prior to that EVP of Supply Chain, Omnichannel Fulfillment and Information Services. Tracy previously held the position of COO at both Fortunoff Brands LLC and Nine West Corporation.
