A unit of financially struggling retailer Bon-Ton Stores Inc. has notified securities regulators that it is using a 30-day grace period to delay a $14 million interest payment on a loan.

Bon-Ton subsidiary Bon-Ton Department Stores Inc. said in a filing with the Securities and Exchange Commission that exercising the grace period will not preclude the company from borrowing under that loan agreement. The payment was due Friday.

Bon-Ton, the parent company of Boston Store, Younkers and other department stores, has been losing money as it tries to compete with online retailers and faces reduced foot traffic at shopping malls. Bon-Ton stores often are anchors of malls.

Bon-Ton has has been unprofitable in each of the last six fiscal years, and it's on track to post a loss again for 2017. Through the first three quarters of 2017, Bon-Ton lost $135.4 million.

Bon-Ton, which has dual headquarters in Milwaukee and York, Pa., announced in November it plans to close at least 40 stores by the end of 2018. It hasn't identified which stores are slated for closing, but that represents about a sixth of Bon-Ton's 260 department stores, furniture galleries and clearance centers.

In addition to Boston Store and Younkers, Bon-Ton operates department stores under the brand names Bergner's, Bon-Ton, Carson's, Elder-Beerman and Herberger's.