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Boscov's files for bankruptcy
Lancaster
Lancaster New Era
Published: Aug 04, 2008
16:54 EST
Reading
By TIM MEKEEL
Boscov's today filed for bankruptcy reorganization, blaming a drop in consumer spending due to the weak economy.

As part of its reorganization, the Reading-based department store chain will close 10 of its 49 stores at an unspecified date.

However, its Park City Center store - one of the largest stores in Lancaster County - will remain open.

Ken Lakin, Boscov's chairman and chief executive officer, said the bankruptcy filing comes despite cost-saving steps and merchandising improvements put in place in recent months.

But these were not enough to offset the impact of the weak economy, which caused consumers to cut spending, and the tight credit market, which kept Boscov's from getting badly needed funds.

These factors "have put severe pressure on our company's financial position," said Lakin in a prepared statement.

Signs that Boscov's was struggling first appeared in late July, when some suppliers stopped shipping goods to its stores. Women's Wear Daily, a leading industry publication, reported last week that Boscov's might file bankruptcy as soon as today.

Boscov's, the nation's largest family-owned independent department store chain, is the latest of many major retailers to fall victim to the slumping economy.

Now that it has filed for bankruptcy, Boscov's has obtained a $250 million loan from Bank of America, enabling it to get ample merchandise for the crucial back-to-school and holiday seasons.
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Boscov's said it expects to file its reorganization plan with the bankruptcy court this fall.

Also sometime this fall, the 10 "underperforming" stores are set to close, idling about 1,400 employees, said Boscov's spokeswoman Susan Kenney.

The Pennsylvania locations to be shut are in Monroeville, Pittsburgh, Langhorne, North Wales and Harrisburg. The other locations to close are in New Jersey, Maryland and Virginia.

Boscov's opened here on April 25, 1988, in the former Pomeroy's and Gimbels location. At 227,000 square feet, its size makes it one of the largest stores in the county. Its number of employees was not immediately available.

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QUOTE(dee @ Aug 14 2008, 03:48 PM)
No, I don't. I think they may have money to spend at that mall, but money does NOT equate to taste. See, we here ARE the northeast so I'll take us over the transplants you have. Think before you speak. Ever hear of an aspiring model getting her start in. . . Atlanta ? Paris, Venice, NYC you are not. Don't kid yourself.
They do have the Weather Channel........
dc
So are we talking about coffee or fashion? I get so confused. I think I'll try some coffee on my deck if my deck will hold it. I have awfully big mugs.
A1
QUOTE(dc @ Aug 14 2008, 03:55 PM)
They do have the Weather Channel........
Ha, yeah they do. They have a lot of great things, its a beautiful and big city. I have to go often for work. However, fashion hub it isn't. Not even close.

QUOTE(A1 @ Aug 14 2008, 04:02 PM)
So are we talking about coffee or fashion? I get so confused. I think I'll try some coffee on my deck if my deck will hold it. I have awfully big mugs.
Please stop interjecting humor into my ridiculously petty argument with Pedrohead.
dee
QUOTE(dee @ Aug 14 2008, 04:04 PM)
Ha, yeah they do. They have a lot of great things, its a beautiful and big city. I have to go often for work. However, fashion hub it isn't. Not even close.

Please stop interjecting humor into my ridiculously petty argument with Pedrohead.


Hey, I could have covered all the bases if I'd said I had big jugs. That requires some special fashion.

A1
QUOTE(A1 @ Aug 14 2008, 04:07 PM)


Hey, I could have covered all the bases if I'd said I had big jugs. That requires some special fashion.


Darlin', you make yourself more appealing everyday !!!

frankomav47
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