Boscov's to file Chapter 11; Close 10 stores including former Ames

[store215]

No surprise here with the recent news...I would be saddened, but not surprised if more closings follow.
7 of the 10 closing stores are former May Company stores and have only been open for maybe 2 years(Strawbridge's, Hects, etc..)

Monmouth, NJ
Danville, VA  (former Ames)
Harrisburg Mall, Harrisburg, PA

Oxford Valley Mall, Langhorne, PA
Montgomery Mall, North Wales, PA
Monroeville Mall, Monroeville, PA
South Hills Village, Pittsburgh, PA
Owings Mills Mall, Owings Mills, MD
Marley Station, Glen Burnie, MD
White Marsh Mall, Perry Hall, MD

[dmx10101]

Here's the news article-


Boscov's Department Stores Seek Bankruptcy Protection (Update3)

By Dawn McCarty and Bob Van Voris

Aug. 4 (Bloomberg) -- Boscov's Inc., the 9,500-employee department-store chain founded in 1911 in Reading, Pennsylvania, filed for Chapter 11 bankruptcy protection in Wilmington, Delaware, today, citing decreased consumer spending.

Boscov's, which said in court papers that it's the biggest family-owned full-service department store chain in the U.S., will immediately close 10 of its 49 stores. The company said it will borrow as much as $250 million from a group of lenders led by Bank of America Corp. to help it restructure.

The collapse of the housing market and increased food and energy costs have led to ``a decline in the discretionary spending by consumers upon which the debtors' business depends,'' Michael Hughes, Boscov's executive vice president of capital development, said in court papers. The company has stores in six states, mostly in Pennsylvania.

A pullback in consumer spending has contributed to more than a dozen retail bankruptcy filings in the past year, including Mervyn's LLC, which operates most of its 177 stores in California, on July 29. It joins Goody's Family Clothing Inc., Linens n' Things and Sharper Image Corp.

Auction Procedures

Boscov's is seeking court approval of auction procedures for the selection of a liquidation firm to assist with store-closing sales. It is requesting an Aug. 12 auction. The company said it will liquidate about $34 million in merchandise at the sales to be commenced by Aug. 15.

The retailer has an agency agreement with Gordon Brothers Retail Partners LLC for about $35 million and is seeking a $50,000 termination fee if Gordon Brothers isn't the winning bidder. Other bids must exceed Gordon's bid by at least $75,000, according to court papers.

Boscov's listed $538 million in assets and $479 million in debts as of May 3 in the court filing.

Regional department store chains are more vulnerable to tightening credit and cuts in allowances from suppliers than national chains, said Burt P. Flickinger III, managing director of Strategic Resource Group.

Flickinger called Boscov's a ``solidly run'' retailer that has suffered from a concentration of stores in economically struggling communities.

The merchant's history dates to 1911, when founder Solomon Boscov moved to Reading and sold goods to surrounding towns by horse and wagon.

Seven Affiliates

The company filed for bankruptcy protection with seven affiliates after failing to refinance its debt, it said. Boscov's said it had sales of $1.25 billion last year. Boscov's Web site lists ``refurbishing plans for several existing stores as well as more opportunities for new Boscov's Stores on the drawing board.''

Boscov's $250 million loan will consist of a $225 million senior revolving credit facility to be funded with as much as a $25 million ``last out revolver advance.''

The 40 largest creditors without collateral backing their claims are owed a total of $32.6 million, court papers show. The three largest unsecured claimholders are Jones Apparel Group Inc., owed $3.1 million; Kellwood, owed $2.6 million; and VF1, owed $1.3 million.

The case is In Re Boscov's Inc., 08-11637, U.S. Bankruptcy Court, District of Delaware (Wilmington).

[beachgal26]

Holy cow!  I have been to all the MD and most of the PA locations and I cannot believe the loss that those malls will be feeling.

BTW - when is someone actually going to admit that we are in a recession?????

:huh::huh::huh:

[Jamesway_princess]

From what I've heard early October is when the South Hills location will be going. My friend works there & they basically told her to look for another place of employment or they can transfer her to the Butler store, but that's one hell of a drive.

[MikeRa]

Originally posted by MBZ321
No surprise here with the recent news...I would be saddened, but not surprised if more closings follow.
7 of the 10 closing stores are former May Company stores and have only been open for maybe 2 years(Strawbridge's, Hects, etc..)

Monmouth, NJ
Danville, VA  (former Ames)
Harrisburg Mall, Harrisburg, PA

Oxford Valley Mall, Langhorne, PA
Montgomery Mall, North Wales, PA
Monroeville Mall, Monroeville, PA
South Hills Village, Pittsburgh, PA
Owings Mills Mall, Owings Mills, MD
Marley Station, Glen Burnie, MD
White Marsh Mall, Perry Hall, MD

The Boscov's at Oxford Valley Mall and Montgomery Mall are former John Wanamaker locations.  The Boscov's at Monmouth Mall is a former Abraham & Straus/Stern's location.  The South Hills Village and Monroeville locations are former Kaufmann's locations.  The 3 Maryland locations are former Macy's locations

[beachgal26]

What area do you live in, Jamesway princess?  I used to live in the Library/Bethel Park area and still have a best friend who lives out near Century III.  

I can't believe all the changes that have come about in the past 20 years since I've been gone.  I never even saw the rail system and still can't believe that Kaufmann's and Gimbles are gone....

:holysh:

[videogamer75]

I hope no NJ locations close....I know the Shore Mall one will definitely close, because in 2009, the whole mall will be bulldozed for a new strip mall. I GOT to get out there and get pics before it happens!!

[Caldor1999]

i cant believe the one in the  Nanuet Mall sadley that mall is to be torndown if you look on the boscovs page i have a few pis of it i went into there a few times and it was such a nice store they redid evreything and it only stayed open for 7 years the whole mall is to beome a shopping center but there keeping macys and sears

[MikeRa]

Originally posted by videogamer75
I hope no NJ locations close....I know the Shore Mall one will definitely close, because in 2009, the whole mall will be bulldozed for a new strip mall. I GOT to get out there and get pics before it happens!!

There is 1 Boscov's in NJ that is closing, and it is at the Monmouth Mall.  This Boscov's was originally Abraham & Straus, and then was Stern's.

[store215]

Actually, someone told me the Shore Mall is one of their top stores...it will probably stay open.