The Reading, Pa.-based department store chain said that it also will close 10 of its 49 stores. It otherwise will continue to operate without interruption during the reorganization. It blamed credit issues, acknowledging that some of its suppliers had stopped shipping merchandise to the company. It also cited sluggish consumer spending.
The retailer, America's largest family-owned independent department store, noted in the release that filing for Chapter 11 protection gives it the tools and time to strengthen its balance sheet.
Boscov's said Monday 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.
The chain has stores in Pennsylvania, New York, New Jersey, Maryland, Delaware and Virginia. It is closing five stores in Pennsylvania, three stores in Maryland, one in New Jersey and one in Virginia.
Monday's announcement follows the Chapter 11 bankruptcy filing last week by Mervyns LLC, a privately held regional department store which operates 175 stores, primarily in California.
Other retailers that have filed for Chapter 11, include Steve & Barry's LLC, once a growing force in low-priced fashion, which filed for bankruptcy protection last month. The list also includes home furnishings chain Linen 'n Things Inc., catalog retailer Lillian Vernon Corp. and specialty retailer Sharper Image Corp.
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