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.