Boscov’s receives OK for bankruptcy financing

Posted: September 04, 2008

Boscov's said today that it won final approval from the bankruptcy court in Delaware to receive $250 million to help the company operate during its bankruptcy reorganization.

The debtor-in-possession financing will come from the Bank of America and will provide cash to enable the 97-year-old Reading retailer to buy merchandise, pay employees and keep its stores open.

Owing creditors $90 million, Boscov's Department Store L.L.C. filed for Chapter 11 bankruptcy protection on Aug. 4.

Interim approval for the financing was approved the next day. Before the bankruptcy filing, vendors had stopped shipments because of unpaid bills.

The family-run company has 49 department stores in Pennsylvania, New Jersey and other Middle Atlantic states. Ten of the stores, including ones at the Montgomeryville Mall and the Oxford Valley Mall, are to close under the restructuring.

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