Department store Boscov's files Chapter 11
Larry Thomas -- Furniture Today, August 11, 2008
READING, Pa. — Boscov's, a family-owned department store chain with 49 stores in the eastern U.S., filed for Chapter 11 bankruptcy protection last week.
The company listed three furniture and bedding companies — La-Z-Boy, Serta and Sauder Woodworking — among its 40 largest unsecured creditors.
“Despite the cost savings, operational and merchandising improvements Boscov's has put in place over the last few months, a great workforce and loyal customers, the downturn in the economy and consumer spending, along with the serious credit market crunch, have put severe pressure on our company's financial position,” said Ken Lakin, chairman and CEO.
In a statement announcing the filing, Lakin said the company would close 10 underperforming stores and said the company already has an agreement with Bank of America for $250 million in debtor-in-possession financing.
According to documents filed in U.S. Bankruptcy Court in Wilmington, Del., La-Z-Boy is owed $768,094, while Serta is owed $669,259 and Sauder Woodworking is owed $424,723.
Most of largest unsecured creditors are apparel companies, including at the top of the list Jones Apparel, which is owed $3.11 million.
Boscov's stores are in Pennsylvania, New York, New Jersey, Maryland, Delaware and Virginia.
