Boscov’s files Chapter 11, will close 10 stores
August 4, 2008,
Wilmington, Del. -- In a move that had been anticipated for several weeks, Boscov's filed for Chapter 11 bankruptcy protection here this morning.
Boscov's said in a filing 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. "This will help us realize additional cost savings and operational efficiencies and improve our financial base so that we can better serve all of our constituencies," chairman and ceo Ken Lankin said in a statement.
Boscov’s said it has 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.”
The company said the DIP will “provide adequate working capital to meet its ongoing obligations during the restructuring.” Boscov’s said it plans to file a plan of reorganization this fall.
The retailer, based in Reading, Pa., is the country's largest family-owned department store company. Annual sales for 2007 were approximately $1.3 billion.