Did expansion lead to Boscov's woes?

Months later now, some of his clients are withholding shipments to Boscov's because they fear the retailer may not be able to pay for the merchandise in full down the road, he said.

"Bernard Sands has been advising its clients to hold shipments for several weeks now," Carbonell said.

The shipment logjam has spurred Boscov's to hunt for cash. The company needs to continue receiving merchandise to make it through the back-to-school season. Lakin said he began searching for private-equity investors after traditional lenders demurred.

Boscov's tried to assuage suppliers in March by announcing it had refinanced some debt, freeing up additional cash.

"I would say creditors saw that as a positive step at the time and perhaps expected more to come of it than what actually materialized," Carbonell said.

Boscov's Highlights

Key points in the recent history of the 97-year-old retailer:

January 2006: Al Boscov and Ed Lakin retire and cash out. Company recapitalizes to replenish buyout cash.

February: Buys 10 Strawbridge's, other old stores.

April: Sells credit card business for $199 million.

Fall 2007: Subprime crisis strikes U.S. economy.

Winter: Dismal shopping season hurts retailers.

February 2008: Suppliers begin to detect payment trouble.

March: Boscov's reassures vendors it has cash.

July: Some vendors stop delivering inventory.

Lenders rebuff requests for emergency financing.

Boscov's says it is looking for a private-equity deal.

Rumors swirl of potential bankruptcy.

Contact staff writer Maria Panaritis at 215-854-2431 or mpanaritis@phillynews.com.