The Boscov's department store chain, which began in the Reading area, has announced it is seeking bankruptcy protection and will close at least 10 of its 49 stores in Pennsylvania, Maryland, New Jersey and Virginia.
Boscov's was the last major family-owned department store to survive in an era of consolidation.
From The Associated Press:
READING (AP) - The troubled chain Boscov's Department Store LLC filed for Chapter 11 bankruptcy protection on Monday, becoming the latest victim of a harsh consumer spending environment.For a full list of the store closings, check out The Mercury's Web site.
The Reading-based department store chain said that it also will close 10 of its 49 stores. It otherwise will continue to operate without interruption during the reorganization. It blamed credit issues, acknowledging that some of its suppliers had stopped shipping merchandise to the company. It also cited sluggish consumer spending.
The retailer, America's largest family-owned independent department store, noted in the release that filing for Chapter 11 protection gives it the tools and time to strengthen its balance sheet.
Boscov's said Monday it has secured $250 million in debtor-in-possession financing from Bank of America, which will allow it to pay for shipments of merchandise for the back-to-school and holiday shopping seasons.
2 comments:
It's a shame that it's come to this. My wife worked at the credit desk of the Boscov's in Wilkes-Barre for 8 years, back in the day when AL Boscov himself was running things.
The only reason she left was she got tiree of working retail hours.
I don't know how things are now, bu Al took good care of his employees as far as such things as benefits, Christmas parties, company picincs and the like. I see the WIlkes-Barre store isn't on the list, but sadly, it's probably just a matter of time.
They are using the economy, "harsh consumer spending" and every other excuse but ignoring the real reasons for their demise. The public has determined that Target, Walmart, Bed Bath and Beyond and others offer a better product as lower prices. The Boscov stores are outdated, the merchandise is second-rate and the store locations, in many cases, are in malls that are having financial woes of their own.
That, combined with bad business decisions, is the reason for their troubles. They should look inward for reasons. Afterall, other retailers are doing just fine in this "horrible economy".
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