August 11, 2008,
Boscov's in Ch.11, to Close 10 Stores
Privately held mid-Atlantic department store chain Boscov's filed for Chapter 11 bankruptcy protection on August 4, saying it will close 10 of its 49 stores: Danville, Va.; Eatontown, N.J.; Pittsburgh, East Harrisburg, Langhorne, Monroeville, North Wales, Pa.; Baltimore, Glen Burnie, Owings Mills, Md.
Boscov's, with 2007 sales of about $1.3 billion, said it secured an agreement in principle for $250 million in debtor-in-possession (DIP) financing from Bank of America, "which will support healthy merchandise flow as the company prepares for the back-to-school and holiday selling seasons."
Mervyns Files Ch.11, Gets $465 Million
Mid-tier department store operator Mervyns filed for Chapter 11 bankruptcy on July 29, saying its 176 stores will remain open and business will continue with the help of a committed $465 million debtor-in-possession (DIP) facility from a lender group led by Wachovia Capital Finance Corporation (Western) as agent.
Dropping from No. 25 to No. 33 on the HTT Top 50 Retailing Giants list, Mervyns had 2007 home textiles retail sales of $145 million.
The company's restructuring information line is (888) 251-2679. For access to court documents and other general information about the Chapter 11 case, visit www.kccllc.net/mervyns.
Filene's Basement Gains Ground
Off-price retailer Filene's Basement has posted increasingly strong sales this year, with second quarter volume up 22.3% to $102.6 million and a modest comp-store gain of 1.4%. Six-month revenues at the 36-store chain climbed 12.9% to $202.6 million, while comps gained 0.6%.
The chain represents about one-fifth of the volume of parent Retail Ventures (RVI), which also operates footwear discounter DSW and sold off its majority interest in the Value City discount chain last January. The company said the contract of RVI president and ceo Heywood Wilansky will end on Jan. 31, 2009 and will not be renewed, a means, said RVI, to "contribute to cost savings objectives."