NEW YORK — Joseph Horne Co., the cash-strapped 10-unit department store chain that has been on the selling block since the beginning of the year, has narrowed the number of potential buyers to Federated Department Stores and Bon-Ton Stores, according to industry sources.
Reportedly, a Chapter 11 bankruptcy filing is being weighed if a sale cannot be executed.
Officials at Pittsburgh-based Horne’s could not be reached for comment.
Federated Department Stores had no comment on the report. Executives at Bon-Ton Stores could not be reached for comment.
Should Federated acquire Horne’s, it could merge it into its Lazarus division, based in Cincinnati. Federated currently does not operate stores in the Pittsburgh area, and the closest Lazarus store is in Huntington, W.Va.
Horne’s went through a $200 million leveraged buyout in 1986 and rumors about the firm’s financial health have been rampant in recent years.