The Bon-Ton Stores proved they weren't going to be jilted for long. Less than a week after the department store chain was dumped by HSBC Bank Nevada N.A, its private-label retail credit card provider, the company has found a new suitor to take over its credit operations.
Alliance Data has signed a multi-year deal to begin providing the company's retail credit card, Bon-Ton Stores announced in a press release. Alliance Data will take over the portfolio once HSBC Bank Nevada's contract ends in June of 2012.
HSBC Bank Nevada didn't disclose the reason for terminating its seven-year agreement with the retailer. The bank is a subsidiary of HSBC Finance which, according to its website, is the third-largest issuer of private-label credit cards in the USA; some of HSBC's other clients include Best Buy and Neiman Marcus.
The new vendor, Alliance Data, manages 90 retail credit card programs through its Retail Services branch; the company also owns Epsilon, a marketing firm, and LoyaltyOne, a company that assists with loyalty programs. The Retail Services division manages the retail cards for David's Bridal, Victoria's Secret, Ann Taylor, Eddie Bauer, Pottery Barn, Pac Sun and The Buckle, among others. Alliance Data will run all operations for the Bon-Ton Stores' cards, including new account acquisition, multi-channel marketing and customer service.
The Bon-Ton Stores own 276 department stores in 23 states, notably in the Northeast and Midwest. The company operates 11 furniture galleries also, and its retail stores include Bon-Ton, Bergner's, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and Younkers. In the Detroit area, the company owns the Parisian stores.
Terms of the new credit card were not disclosed, but the company press release said customers could continue using their current Bon-Ton Stores cards without interruption.