Mid-Atlantic Retailer Boscov’s Seeks Chapter 11 Bankruptcy Protection

The troubled chain Boscov's Dept. Store filed for Chapter 11 bankruptcy protection recently, becoming the latest victim of a harsh consumer spending environment. The Reading, PA-based department store chain said 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 some suppliers stopped shipping merchandise to Boscov's. It also cited sluggish consumer spending. The retailer, the country's largest family-owned independent department store, noted in the release filing for Chapter 11 protection gives it the tools and time to strengthen its balance sheet. Boscov's said Monday it secured $250M 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. The chain has stores in PA, NY, NJ, MD, DE and VA. It is closing five stores in PA, three stores in MD, one in NJ and one in VA. The recent announcement follows the Chapter 11 bankruptcy filing recently by Mervyns LLC, a privately held regional department store which operates 175 stores, primarily in CA. Other retailers that filed for Chapter 11, include Steve & Barry's LLC, once a growing force in low-priced fashion, which filed for bankruptcy protection in July. The list also includes home furnishings chain Linen 'n Things Inc., catalog retailer Lillian Vernon Corp. and specialty retailer Sharper Image Corp.