Boscov's seeks bankruptcy protection

August 4, 2008 3:38:44 PM PDT
The troubled Boscov's Department Store chain has filed for Chapter 11 bankruptcy protection. The Reading, Pa.-based department store chain also says it will close 10 of its 49 stores. It otherwise will continue to operate without interruption during the reorganization.

Boscov's blames credit issues, acknowledging that some suppliers have stopped shipping merchandise to the company. It also cites sluggish consumer spending.

The company says, though, it has secured $250 million in financing from Bank of America, which will allow it to pay for shipments of merchandise for the back-to-school and holiday shopping seasons.

The retailer - America's largest family-owned independent department store - has stores in Pennsylvania, New York, New Jersey, Maryland, Delaware and Virginia.

In a statement on July 29th, when asked about the store's financial situation, officials with Boscov's said "it is currently working with its lenders and advisors exploring a range of alternatives to improve our company's financial base".

Boscov's is the nation's largest family-owned, full-service department store chain with 49 locations.

The store's roots date back to 1911 when founder Solomon Boscov sold items in Berks and Lancaster counties using a horse and wagon. Eventually the first store was created at 9th and Pike Streets in Reading.

Boscov's first expanded outside of reading in 1972 by opening a store in Lebanon.

The other Boscov's stores that are closing are:

    • Marley Station Mall, Glen Burnie
    • Owings Mills Mall, Owings Mills
    • White Marsh Mall, Baltimore
    • Monmouth Mall, Eatontown
    • Harrisburg East Mall, Harrisburg
    • Monroeville Mall, Monroeville
    • Montgomery Mall, North Wales
    • Oxford Valley Mall, Langhorne
    • South Hills Village Mall, Bethel Park
    • Piedmont Mall, Danville

Information from wire reports was used in this story.