Boscov's Files for Chapter 11

Reading, Pa.-based department store chain to shutter 10 of 49 locations
By Newser Editors and Wire Services
Posted Aug 4, 2008 2:18 PM CDT
Boscov's joins Steve & Barry's as a Chapter 11 filer.   (Getty Images)
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(Newser) – The troubled department store chain Boscov's filed for Chapter 11 bankruptcy protection today, becoming the latest victim of the harsh consumer spending environment. The Reading, Pa.-based chain said it will close 10 of its 49 stores, citing sluggish consumer spending and credit issues—and acknowledging that some of its suppliers had stopped shipping merchandise to the company—as contributing factors.

The country's largest family-owned independent department store chain said 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 seasons. Boscov's joins other recent Chapter 11 filers like Steve & Barry's, Linens 'n Things, Lillian Vernon, and Sharper Image.