Boscov's seeks bankruptcy protection |
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| Tuesday, 05 August 2008 | |
 Most recent victim of economic difficulties in the U.S.: Boscov’s. America’s largest family-owned independent department store filed a voluntary Chapter 11 petition for bankruptcy court protection and is considering a sale of the chain. Boscov’s, which operates 49 stores in six states, posted sales of slightly more than $1.25 billion in 2007. In a
declaration by Michael J. Hughes, executive vice president for capital development at Boscov’s, the company is seeking court approval of a $225 million debtor-in-possession credit facility with Bank of America as the administrative agent. The retailer plans to file a reorganization plan by Oct. 22 and hopes to exit bankruptcy proceedings during the first quarter of 2009.
Boscov’s follows in the footsteps of Mervyns, Goody’s Family Clothing Inc., Steve & Barry’s and Linens-N-Things, who have all filed for bankruptcy in the last weeks. The Boscov and Lakin families, which own the company, have recently about $30 million in Boscov’s to save the company. The filing ended discussion about whether they would be willing to give another cash infusion to their firm. The largest unsecured creditor listed in the bankruptcy court filing is Jones Apparel Group Inc. The name of Belk Inc. (claiming to be the nations largest privately owned department store company) has been mentioned as possible buyer. Photo: Boscov's |
