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Boscov's Inc., the privately held department store chain with three locations in Delaware, filed this morning for Chapter 11 bankruptcy protection, saying in a court filing in Wilmington it plans to close 10 of its 49 stores.

None of the stores slated to close are in Delaware, where the Reading, Pa.-based retailer operates at the Christiana Town Center on Del. 273 and in the Dover Mall and Concord Mall. The 10 stores to close are in Maryland, Pennsylvania, New Jersey and Virginia.

Boscov’s is America’s largest family-owned independent department store.

Boscov's, which employs about 9,500 people companywide, is the latest in a long line of retailers to file for bankruptcy reorganization as cash-strapped consumers cut back on spending in the face of slumping home prices and rising gas prices.

In its filing in U.S. District Court in Wilmington, the retailer cited a slowdown in shoppers' discretionary spending and tighter credit markets as the reasons for its request for protection from creditors. The firm also blamed credit issues, acknowledging that some of its suppliers had stopped shipping merchandise to the company.

The stores the firm is not closing will continue to operate while the court petition is considered. Boscov’s said today 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.

In recent months, Linens N Things, Sharper Image, catalog retailer Lillian Vernon Corp. and The Bombay Company all have filed for bankruptcy protection under Chapter 11. The latest major filing before Boscov’s came last week, when Mervyns LLC, a privately held regional department store which operates 175 stores, primarily in California, filed for Chapter 11 protection.

In its filing, the company listed assets of $538 million and liabilities of $479 million. Its 40 largest unsecured creditors, led by Jones Apparel Group Inc., are owed a total of $32.6 million.

The Reading, Pa.-based department store chain, which opened its first store in 1911, posted sales of $1.25 billion in its most recently completed fiscal year, which ended Feb. 2.

The Associated Press and Bloomberg News contributed to this report. Find complete coverage Tuesday in The News Journal and at delawareonline.com. Contact Gary Haber at 324-2878 or [email protected].
 

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Discussion Starter · #4 ·
DonMan said:
. . . Only a woman would be concerned about one less place to spend money. :winker:

i'm not ur typically shopper. i'm debt free thank you very much! :D if i dont have the cash for it, no need to buy it... just my 2 cents!
 

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Daddy's Girl said:
i'm not ur typically shopper. i'm debt free thank you very much! :D if i dont have the cash for it, no need to buy it... just my 2 cents!

Smart Girl :D :bigsmile: :winker: :winker:
 

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:( Never been to one of those stores...
But certainly a sad state of affairs in this country lately.
In the imortal words of 2 geniuses (Cheech AND Chong)
"Things are tough all over!"
 
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