Boscov's Joins Bankruptcy List

The Reading, Pa.-based independent department store said the decision to file was made because of credit issues with suppliers and slow consumer spending. Boscov’s said it will be closing 10 of its 49 stores, and the remaining locations will continue to operate without interruption.

The retailer said it has secured $250 million in debtor-in-possession financing from Bank of America, in anticipation of the upcoming back-to-school and holiday shopping seasons.

Boscov’s is one of many department stores and other specialty retailers, who have filed for Chapter 11 in recent months, some of which include Linen ‘n Things, The Shaper Image, and more recently, the California department store chain, Mervyns.