Boscov's, the largest family operated department store, has filed for bankruptcy protection. They operate 49 stores in Pennsylvania, New York, New Jersey, Maryland, Delaware and Virginia. They cited lowered consumer spending as a reason for their business decision.
The company plans to shut down five stores in Pennsylvania, three stores in Maryland, one in New Jersey and one in Virginia as part of their restructuring plan. Bank of America (NYSE:BAC) has extended them $250 million dollars in debtor-in-possession financing so the department store can purchase inventory for the back-to-school and upcoming holiday season, shipments from some suppliers have already been halted.
Brands that Boscov's carries includes Toshiba, Fisher-Price, Estee Lauder, DKNY, Tommy Hilfiger and Sketchers, just to name a few.
News of their bankruptcy comes on the heels of other retailers declaring bankruptcy. Linen and Things, The Sharper Image and Steve and Barry's recently filed for bankruptcy protection. These retailers also sold clothing, electronics and home needs and cited a tighter consumer spending environment as the major factor for filing bankruptcy.
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