US department store retailer The Bon-Ton Stores has extended its chief executive's employment contract by a year.

The amendment means Bud Bergren will continue to serve as president and chief executive officer until 5 February 2012. His tenure will then renew for successive periods of one year unless either the company or Bergren decide otherwise.

When that happens, Bergren will continue as a director, and, at the company’s election, will also serve as the chairman of the board until the annual meeting of shareholders a year later.

Tim Grumbacher, executive chairman of Bon-Ton's board of directors, said: "We are very pleased that Bud has accepted the board’s request to continue in his role as president and chief executive officer.

"Bud provides significant leadership and insight to identify strategic initiatives as we leverage our operational and merchandising strengths."

The company has also promoted Barbara Schrantz to chief operating officer, effective 30 January. Schrantz is currently executive vice president, sales promotion and marketing.