Connect With Us


Boscov's Files for Bankruptcy


Regional department store chain Boscov's filed for Chapter 11 bankruptcy protection and has put itself up for sale. So that's Mervyns and Boscov's in less than a week. Things are definitely getting bloody out there.

Boscov's plans to close 10 unprofitable stores. That's an interesting number for Boscov's. It's the same number of stores the company bought from Federated back in 2006.

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.

Boscov's did not immediately return a call seeking comment on possible job cuts.

In a court filing, Executive Vice President Michael Hughes said Boscov's was hurt as the housing market collapse, skyrocketing energy and gas prices, and higher food costs caused consumers to spend less on discretionary items. He also said credit market conditions caused many vendors to tighten terms.

"The recent addition of these pressures and constraints to a broadline retailing industry that already operated on thin profit margins has forced the debtors into inadequate liquidity levels," Hughes said.


Please or Register to post comments.

What's TrafficCourt?

Industry news, views and occasional strange stuff.


Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
Blog Archive
National Real Estate Investor Related Sites

Sponsored Introduction Continue on to (or wait seconds) ×