The Bon-Ton Stores enters into credit card agreement with HSBC Bank Nevada

Department store operator The Bon-Ton Stores has entered into a third amendment to its credit card program agreement with HSBC Bank Nevada.

Under the agreement, which is in effect through June 20, 2012, Bon-Ton continues to participate in the revenue generated by credit sales.

The Bon-Ton Stores has said that the third amendment defines additional protection for the credit lines of certain of the company's loyal credit card customers, as well as revises the compensation the company will receive for certain types of sales made on the credit cards and provides that the company and HSBC will share certain losses associated with the credit card program.

The Bon-Ton Stores has added that the amendment provides that either party may terminate the third amendment between April 1, 2010 and July 31, 2010 upon providing notice and making a cash payment to the other party. The impact of the amendment on Bon-Ton's financial results is estimated to be in the range of approximately $5 million to $9 million per year and was reflected in the company's fiscal 2009 guidance previously provided in the first quarter of fiscal 2009.

Bud Bergren, president and CEO of The Bon-Ton Stores, said: "We are pleased to announce the continuation of the strategic alliance 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 cardholders."

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