RETAIL: DEPARTMENT STORES : BANKRUPTCY: Regional Retailer Boscov's Files for Chapter 11
David P. Dillard
RETAIL: DEPARTMENT STORES :
BANKRUPTCY:
Regional Retailer Boscov's Files for Chapter 11
Regional Retailer Boscov's Files for Chapter 11
By RACHEL DODES
August 5, 2008; Page B3
Wall Street Journal
<http://online.wsj.com/article/
SB121786141482710125.html?mod=googlenews_wsj>
A shorter URL for the above link:
Regional retailer Boscov's Department Store LLC filed for Chapter 11
bankruptcy protection Monday, making it the latest casualty of the
consumer spending slump.
The filing, which came six days after Mervyn's LLC sought court protection
from its creditors, highlights the challenges midtier regional department
stores face as consumers cut back on discretionary spending amid rising
fuel and food costs.
"We are middle America," said Maralyn Lakin, Boscov's senior vice
president and a member of the family that controls the company. "I have
never seen anything like this."
Regional department-store chains like the 97-year-old Boscov's were once
the go-to destination for shoppers seeking everything from furniture to
electronics, cookware and clothing.
But their local focus left the chains exposed to regional economic
problems like the real-estate market collapse that hurt Mervyn's in
California and Arizona, as well as fierce competition from national chains
like J.C. Penney Co., Kohl's Corp. and Macy's Inc. At the same time, their
small size -- once an advantage that allowed them to respond quickly to
local tastes -- has prevented many regional chains from cutting deals with
suppliers for exclusive lines they could use to differentiate themselves
from competitors.
----------------------------------------
Boscov's Department Stores Seek Bankruptcy Protection (Update4)
By Dawn McCarty and Lauren Coleman-Lochner
Bloomberg
<http://www.bloomberg.com/apps/
news?pid=20601103&sid=a2fCiNWU8sI8&refer=news>
A shorter URL for the above link:
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.
----------------------------------------
Boscov's files for bankruptcy; several stores closing immediately
By Andrea K. Walker, Paul Adams and Julie Scharper | Sun reporters
8:12 PM EDT, August 4, 2008
Baltimore Sun
<http://www.baltimoresun.com/business/bal-boscovs0804,0,7798675.story>
Boscov's, based in Reading, Pa., will begin liquidation sales immediately
and will close those "underperforming stores" when the entire inventory is
sold, which officials estimate will take one to two months. About 1,400
employees, including about 400 in the Baltimore area, will lose their
jobs.
Officials from the 49-store chain said in court filings and interviews
that the collapse in the housing market, skyrocketing energy prices and
higher food costs cut the discretionary spending of its shoppers and in
turn put pressure on the company's finances. The decline also emerged
after the 87-year-old privately held company began an aggressive expansion
strategy into new markets two years ago.
"There was no way that we could have ever anticipated these tough economic
times," said Maralyn Lakin, Boscov's senior vice president of marketing
and public relations. "So many people were affected with their mortgages
and high gas and food prices. This is beyond what anybody expected."
The bankruptcy comes after Federated Department Stores bought May Co. for
$12 billion in 2005, freeing up valuable mall space that made way for the
biggest expansion in Boscov's history. The Federated transaction resulted
in the closing of several Hecht's stores in the Baltimore market. That
opened the door for new Boscov's at White Marsh, Owings Mills and Marley
Station malls in 2006. Each of those stores, which Lakin said were not
making money, will close under this reorganization.
"It takes time to develop a customer base in new markets as customers come
to understand who and what we are," Lakin said. "The stores had not turned
a profit. Given the economic situation, we don't have the cash flow to
keep supporting markets that aren't profitable."
----------------------------------------
Retailer Boscov's files bankruptcy, may be sold
Mon Aug 4, 2008 10:29am EDT
Reuters
<http://www.reuters.com/article/APPARL/idUSN0446028820080804>
Founded in 1911, Boscov's describes itself as the largest family-owned,
full-service U.S. department store chain, with 9,500 employees and 49
locations in Pennsylvania, Delaware, Maryland, New Jersey, New York and
Virginia. The Reading, Pennsylvania, company plans to close 10
unprofitable stores.
Boscov's joins more than a dozen retailers to go bankrupt in the last
year, including Bombay Co, Goody's Family Clothing Inc, Linens 'n Things
Inc, Mervyn's LLC, Sharper Image Corp, Shoe Pavilion Inc and Steve &
Barry's LLC.
<snip>
The company plans to arrange up to $250 million of financing from lenders
led by Bank of America NA to keep operating. It said it has also retained
Lehman Brothers Inc to help it obtain new capital.
The company's largest unsecured creditors include Jones Apparel Group Inc,
owed $3.1 million; Kellwood Co, owed $2.6 million, and an affiliate of VF
Corp, owed $1.3 million, the bankruptcy petition shows.
----------------------------------------
Retailer Boscov's goes bankrupt
Intelligencer Journal
Published: Aug 05, 2008
01:36 EST
Park City Center, Lancaster
<http://articles.lancasteronline.com/local/4/225466>
Boscov's Inc. and seven businesses affiliated with the privately held
department store chain filed for Chapter 11 bankruptcy protection Monday.
Reading-based Boscov's, which last week said many vendors it owed money to
were withholding their orders, said it plans to close 10 of its 49 stores
and cut about 1,400 jobs.
Boscov's 227,000-square-foot store at Park City Center is not slated to
close.
The company said it will close five stores in Pennsylvania including one
in Harrisburg three in Maryland and one each in New Jersey and Virginia.
<snip>
Michael J. Hughes, Boscov's executive vice president of economic
development, detailed why the company filed bankruptcy in a 14-page
declaration to U.S. Bankruptcy Judge Kevin Gross in Wilmington, Del.
Hughes wrote that the Boscov's bankruptcy will allow it time to develop a
rebound strategy "while weathering the economic storm currently buffeting
domestic retailers."
Boscov's was founded by the Russian immigrant Solomon Boscov in 1919. His
son, Albert, and his son-in-law, Edwin Lakin, joined the company in 1953.
Albert Boscov and Lakin retired in 2006 and named Lakin's son Boscov's
nephew, Kenneth Lakin as chairman and chief executive of the department
store chain.
Lakin guided an aggressive expansion campaign that included the purchase
of 10 vacant Strawbridge & Clothier stores. But the expansion did not
generate the anticipated boost in profit and cash flow.
The 10 stores that will close will shut down once inventory is sold in
about a month or two, the company said.
Boscov's said it has a line of credit of $250 million from Bank of America
and its stores will be well stocked for the back-to-school and holiday
shopping seasons.
----------------------------------------
Boscov's To Close 10 Stores
POSTED: 10:19 pm EDT August 4, 2008
UPDATED: 10:42 pm EDT August 4, 2008
WGAL Television CNN Affiliate Lancaster, Pennsylvania
<http://www.wgal.com/news/17094055/detail.html>
Boscov's announced Monday it has filed for bankruptcy and is closing 10
stores, including one in the Susquehanna Valley.
There has been speculation about the closings for weeks. It became
official Monday morning when Boscov's filed for Chapter 11 bankruptcy
protection in Wlmington, Del.
<snip>
Here is a list of the stores that will be closed:
Pennsylvania
*
* Montgomery Mall, North Wales
* Oxford Valley Mall, Langhorne
* Harrisburg East Mall, Harrisburg
* Monroeville Mall, Monroeville
South Hills Village Mall, Bethel Park
Maryland
*
* Marley Station Mall, Glen Burnie
* Owings Mills Mall, Owings Mills
White Marsh Mall, Baltimore
New Jersey
*
Monmouth Mall, Eatontown
Virginia
*
Piedmont Mall, Danville
----------------------------------------
Local shoppers hope stores stay
Retailer's Chapter 11 bankruptcy catches some customers off-guard.
Area outlets remain open.
Tuesday, August 05, 2008
By TOM ZANKI
The Express-Times
Lehigh Valley Alive
<http://www.lehighvalleylive.com/business/index.ssf?/
base/business-0/121790914864050.xml&coll=3>
A shorter URL for the above link:
Above all, the quality of Boscov's customer service earns the loyalty of
Sherwin Williams.
The Bangor resident visited the Palmer Park Mall store Monday to exchange
a couch. Nothing wrong with the country-style sofa, Williams said; he and
his wife, Jane, just had a change of heart.
It was a smooth transaction.
"They're always nice to us," Williams said. "No complaints. We hope they
stay here."
<snip>
About 15 miles west at Lehigh Valley Mall, Maria Sweeney echoed Williams'
sentiments. Boscov's opened there two years ago.
"Since they're here, it's the only place I shop at this mall," said
Sweeney, of Whitehall Township.
From shoes to bathroom curtains, Sweeney recounted instances in which the
products she sought were not immediately available. But local store
representatives contacted other stores and arranged shipment.
"They deliver it to your home," Sweeney said. "I think that's a plus,
plus."
Several shoppers interviewed were saddened by the bankruptcy filing, even
if local Boscov's outlets are not shuttering.
Customers said the department store strikes the right balance between
quality and price while maintaining a comfortable shopping environment.
"It would certainly change our habits if we were to lose them," said Bob
Kocis, of Bethlehem.
Kocis, who frequents both local stores with his wife, Mary Call, was
shopping for luggage at the Palmer Township site.
"I think they are a real contributor to the local economy," Kocis said.
"They have an interesting niche in the market -- somewhere between Macy's
and Kmart."
----------------------------------------
Local Boscov's stays
York Gallaria store wont close. North Hanover Mall store is in limbo.
By SEAN ADKINS
Daily Record/Sunday News
Article Last Updated: 08/05/2008 12:29:02 AM EDT
<http://ydr.inyork.com/ci_10098744>
Despite its Monday morning Chapter 11 bankruptcy protection filing,
Boscov's will not close its sole York County store at the York Galleria.
"It's a strong, viable business that is planned to continue," said Maralyn
Lakin, senior vice president of marketing and public relations for the
Reading-based retailer.
Lankin said the company has no timetable for when its yet-to-be completed
North Hanover Mall store will open.
"That will be up to the (bankruptcy) court," she said.
John Huston, code enforcement officer for Hanover, said a person
associated with Boscov's planned North Hanover mall store called his
office last month stating the retailer would resume construction within
4-to-8-weeks.
That store had been scheduled to open in spring 2009.
<snip>
The company plans to start working with its creditors and other parties on
a reorganization plan.
The retailer expects to file its plan to the bankruptcy court later this
fall.
In terms of workforce, Boscov's expects to be able to keep paying active
employee salaries and benefits, according to the statement.
Boscov's will continue to honor its current gift cards, product warranties
and bridal registries.
The Boscov Travel Center at the York Galleria, a separate entity from the
department-store chain, was not affected by the bankruptcy filing.
-----------------------------------------
Posted on Mon, Aug. 4, 2008
Boscovs files for bankruptcy protection
By Maria Panaritis
INQUIRER STAFF WRITER
Philadelphia Inquirer
<http://www.philly.com/inquirer/breaking/business_breaking/
20080804_Boscovs_files_for_bankruptcy_protection.html>
A shorter URL for the above link:
For months, family members scraped and scrounged to save their beloved
Boscov's. The pressure was intense. An "emotional roller coaster,"
according to chief executive officer Ken Lakin.
They cut costs. Dumped millions of their own money into the nation's
largest family-owned department store chain. Refinanced debt and promised
vendors they'd make good on late payments. They even courted
private-equity investors.
"Will it be enough?" they asked themselves time and again.
By Friday night, it had become clear: Bankruptcy was inevitable. "There
was no going back," Lakin said.
The Reading company, whose stubbornly old-style stores anchor many of the
region's malls and which proudly flaunts customer service with a smile
(homemade fudge, too), filed today for Chapter 11 bankruptcy protection.
The filing of the voluntary petition in U.S. Bankruptcy Court in Delaware
gives Boscov's Department Store L.L.C., the last of a dying breed,
breathing room to keep operating despite owing restless creditors $90
million.
The bankruptcy filing made possible a $250 million emergency loan that
will enable Boscov's to pay employee wages, buy merchandise, and live to
see another day.
Vendors had stopped shipments a few weeks ago because of unpaid bills.
This provoked a furious search by company officials for emergency cash -
an effort made all the more difficult by the credit crisis that has
tightened lending.
As part of its planned reorganization, the 97-year-old company said it
would close 10 of 49 stores (in Montgomeryville Mall and Oxford Valley
Mall in our region).
Seven of the stores on the chopping block were snapped up by Boscov's in
early 2006, after Strawbridge's and other chains vanished, leaving behind
vacant mall anchors.
Boscov's said its acquisition of those 10 stores did not meet expectations
in that they "have not generated the increases in profit and cash flow
anticipated."
Despite its fragile financial state, brought about in part by declining
sales and consumer hardship, Boscov's will continue sponsoring
Philadelphia's Thanksgiving Day Parade, Lakin said.
The company also hopes to stick to its plan to open a new store at Willow
Grove Park mall, though that decision and others will have to be put to
creditors. No date has been set.
------------------------------------------
The complete articles may be read at the URLs provided for each.
Thanks to Dennis M. Linsky, frequent contributor to the Philly_Traction
Philadelphia transit discussion group for privately alerting me to this
development.
Additional Content Shared on the Internet from Dennis M. Linsky.
<http://www.google.com/search?q=%22Dennis+
M.+Linsky%22&hl=en&rls=DAUS,DAUS:2006-11,DAUS:en&filter=0>
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Philly_Traction Philadelphia transit discussion group
<http://finance.groups.yahoo.com/group/Philly_Traction/>
WEBBIB0809
Sincerely,
David Dillard
Temple University
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David P. Dillard
Date: Tue, 5 Aug 2008 08:06:54 -0400
From: Nyc Labrets <DigitalC...@gmail.com>
Reply-To: Net-...@yahoogroups.com
To: Net-...@yahoogroups.com
Subject: Re: [Net-Gold] RETAIL: DEPARTMENT STORES : BANKRUPTCY: Regional
Retailer Boscov's Files for Chapter 11
.
Re: [Net-Gold]
RETAIL: DEPARTMENT STORES :
BANKRUPTCY:
Regional Retailer Boscov's Files for Chapter 11
From The Centre for Research on
Globalization
<http://www.globalresearch.ca/
index.php?context=viewArticle&code=
ENG20080802&articleId=9728>
A list of recent planned retail store closings
in the US:
*Ann Taylor* closing 117 stores nationwide.
* *
*Eddie Bauer* to close more stores after closing
27 stores in the first quarter.
* *
*Cache, *a women's retailer is closing 20 to 23
stores this year.
* *
*Lane Bryant, Fashion Bug, Catherines* closing 150
stores nationwide
* *
*Talbots, J. Jill* closing stores. Talbots will
close all 78 of its kids and men's stores plus
another 22 underperforming stores. The 22 stores
will be a mix of Talbots women's and J. Jill.
* *
*Gap Inc.* closing 85 stores
* *
*Foot Locker* to close 140 stores
* *
*Wickes Furniture* is going out of business and
closing all of its stores. The 37-year-old retailer
that targets middle-income customers, filed for
bankruptcy protection last month.
* *
*Levitz *- the furniture retailer, announced it
was going out of business and closing all 76 of
its stores in December. The retailer dates back
to 1910.
* *
*Zales, Piercing Pagoda* plans to close 82 stores
by July 31 followed by closing another 23
underperforming stores.
* *
*Disney Store* owner has the right to close 98
stores.
* *
*Home Depot* store closings 15 of them amid a
slumping US economy and housing market.
The move will affect 1,300 employees.
It is the first time the world's largest home
improvement store chain has ever closed a
flagship store.
* *
*CompUSA* (CLOSED).
* *
*Macy's* - 9 stores closed
* *
*Movie Gallery* – video rental company plans
to close 400 of 3,500 Movie Gallery
and Hollywood Video stores in addition to the
520 locations the video rental
chain closed last fall as part of bankruptcy.
* *
*Pacific Sunwear* - 153 Demo stores closing
* *
*Pep Boys* - 33 stores of auto parts supplier
closing
* *
*Sprint Nextel* - 125 retail locations to close
with 4,000 employees following 5,000 layoffs
last year.
* *
*J. C. Penney, Lowe's and Office Depot* are all
scaling back
* *
*Ethan Allen Interiors*: plans to close 12 of 300
stores to cut costs.
* *
*Wilsons the Leather Experts* – closing 158 stores
* *
*Bombay Company:* to close all 384 U.S.-based
Bombay Company stores.
* *
*Dillard's Inc.* will close another six stores
this year.
~Nyc
.
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--
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