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Boscov's is an American department store founded by Solomon Boscov in 1911. The first store was in Reading, Pennsylvania, and today 39 additional stores are spread throughout the Mid-Atlantic states of Pennsylvania, New Jersey, Maryland, New York, and Delaware. Boscov's, along with Belk and Dillard's, is one of the last family-owned department store chains in the United States, and has yearly revenue of over $1 billion. The chain of stores competes with the prices and products of The Bon-Ton. In some cities, Boscov's now competes with JCPenney, Macy's and Sears. The current company chairman is Albert Boscov The company, along with Philadelphia station WPVI-TV, was an annual title sponsor of the Philadelphia Thanksgiving Day Parade in Philadelphia from 1988 until 2007, having taken over when Gimbels Department Stores went out of business. After the company filed for bankruptcy, title sponsorship was taken over by Swedish Furniture and Housewares retailer IKEA, whose North American Home office has been in nearby Plymouth Meeting since 1982. Boscov's still operates two downtown department stores in Binghamton, NY, and Wilkes-Barre, Pennsylvania.
[edit] HistorySolomon "Sol" Boscov was a Russian Jew who emigrated to Reading, Pennsylvania in 1911.[1] He had $1.37 in cash on arrival in the United States.[1] He worked as a traveling salesman with an initial $8 worth of merchandise. Because he spoke Yiddish, he was able to converse with those people in Berks County who spoke Pennsylvania Dutch.[1] The first Boscov's was founded in downtown Reading as the Economy Shoe Store and Dry Goods Annex.[2] Boscov's began opening satellite stores in the Reading suburbs in the 1960s. As early as 1968, Boscov's had five stores, 2200 workers and annual sales exceeding $50 million.[3] Solomon Boscov retired and was succeeded by his son Albert "Albie" Boscov as head of the company in 1968.[3] Boscov's began opening stores in nearby counties, starting with the Lebanon, Pennsylvania, store in 1972. [4] [edit] Store OfferingsMany of the stores still offer several of the traditional services and departments that others discontinued years ago: gift wrapping, layaway, candy department, toy department, sporting goods, optical and a travel center. However, the stores no longer have hardware or automotive accessory departments. Eight stores include in-store restaurants called The Greenery. The Boscov's North store in Reading used to offer the same basic automotive services as Wal-Mart and Sears, and also offered state inspection service as JCPenney once did. [edit] BankruptcyIn late July 2008, reports began swirling that the company would be forced into bankruptcy after a number of its suppliers began halting future shipments of merchandise due to lack of payments.[5] On August 4, 2008, Boscov's officially filed for Chapter 11 bankruptcy protection[6] in which they announced 10 under-performing stores will be closed: 5 in Pennsylvania, 3 in Maryland, and one each in New Jersey and Virginia[7]. On September 18, 2008, Boscov's announced that it had named Philadelphia-based Versa Capital Management Inc. (parent company or major shareholder of Republic Storage Systems, Polartec, and Black Angus Steakhouse, among others) as the preferred, or "stalking horse" bidder for a complete sale of the company, with an offer of $11 million cash plus assumption of all debt. The purpose of a stalking horse is to provide a rough estimate of the value of a company, as a basis for possible bidding by other parties. If no other bids are received, Versa reportedly was prepared to go through with the acquisition. The Boscov and Lakin families also were rumored to be working on an alternative plan that would allow retention of family voting control.[citation needed] On October 15, 2008, retired chairman and CEO Albert Boscov confirmed earlier rumors by submitting a bid to re-acquire the company, in partnership with his brother-in-law Edwin Lakin (father of then CEO Kenneth Lakin). The bankruptcy auction, originally scheduled for September 24, then postponed to October 1, and again to October 20, was postponed once more to October 27, after several creditors, primarily shopping mall owners, requested more information before permitting the sale to go forward. On November 4, 2008, it was reported that a group of creditors led by former CEO's Albert Boscov and Edwin Lakin would be purchasing the chain out of bankruptcy, and that Boscov's would be terminating their earlier agreement with Versa Capital Management.[citation needed] Ed Rendell, the governor of Pennsylvania, offered a $35 million state loan to Boscov's, funded by the United States Department of Housing and Urban Development, on November 27, 2008.[8]
In December 2008 Al Boscov, Ed Lakin and other businessmen took over the company, officially exiting Chapter 11 bankruptcy.[citation needed] On August 4, 2009, one year after the retail chain declared Chapter 11 bankruptcy protection, Al Boscov reported on WFMZ that the retail chain is doing alright, and that new stores are possible in 2010 despite several suppliers not being paid. .[9] On September 18, 2009, the company successfully exited chapter 11 bankruptcy.[10]  [edit] References
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