Retailer Boscov's files bankruptcy, may be sold

NEW YORK (Reuters) - Department store chain Boscov's Inc filed for Chapter 11 bankruptcy protection on Monday and put itself up for sale, becoming the latest retailer to succumb to a weak economy and tight credit.

The Reading, Pennsylvania-based company and seven affiliates filed for protection from creditors with the U.S. bankruptcy court in Delaware. It had $538 million of assets and $479 million of liabilities as of May 3, a court filing shows.

Founded in 1911, Boscov's describes itself as the largest family-owned, full-service U.S. department store chain, with 49 locations in Pennsylvania, Delaware, Maryland, New Jersey, New York and Virginia. It said it employs about 9,500 people and had sales of $1.25 billion in the year ended February 2.

Michael Hughes, a Boscov's executive vice president, said in a court filing the company plans to close 10 unprofitable stores and is exploring a possible sale to a third party.

He 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. Hughes also said tighter credit market conditions have caused many vendors to tighten credit 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," he said.

Hughes said Boscov's has had productive talks with creditors and intends to emerge from bankruptcy as soon as the first quarter of 2009.

In a separate filing, Boscov's said it plans to arrange up to $250 million of financing to keep operating, with Bank of America NA as administrative agent. It said it also retained Lehman Brothers Inc to help it obtain new capital.

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.

Source: Reuters

Goody's Family Chapter 11 filing expected

NEW YORK, June 6 (Reuters) - Goody's Family Clothing is likely to file for Chapter 11 bankruptcy protection amid a slowdown in demand for apparel, according to media reports on Friday.

The clothing retailer, which sells Levi's jeans and Ashley Judd-branded women's clothes at its retail outlets and online, is expected to file for bankruptcy by early next week, according to reports in the New York Post and Women's Wear Daily. The reports cited unnamed sources.

A representative from Goody's did not immediately respond to calls.

Goody's is a privately held company owned by GMM Capital LLC and PGDYS LLC. Prentice Capital Management is the managing member of PGDYS. A call to Prentice Capital Management was not immediately returned.

The Knoxville, Tennessee, retailer of moderately priced family apparel operated 377 stores, primarily in the Southern United States, as of March.

Source: Reuters