Boscov's
Encyclopedia
Boscov's is an American
department store
founded by Solomon Boscov in 1911. The first store was in Reading, Pennsylvania
, and today 40 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.
in 1911. He had $1.37 in cash on arrival in the United States. 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
.
The first Boscov's was founded in downtown Reading as the Economy Shoe Store and Dry Goods Annex. 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. Solomon Boscov retired and was succeeded by his son Albert "Albie" Boscov as head of the company in 1968. Boscov's began opening stores in nearby counties, starting with the Lebanon, Pennsylvania
, store in 1972.
In 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. On August 4, 2008, Boscov's officially filed for Chapter 11 bankruptcy
protection 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. In addition, Boscov's canceled plans to open a store at the Willow Grove Park Mall
.
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.
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.
Ed Rendell
, then 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.
On August 4, 2009, one year after the retail chain declared Chapter 11 bankruptcy protection, Al Boscov reported on WFMZ-TV
that the retail chain is doing okay, and that new stores are possible in 2010 despite several suppliers not being paid.
On September 18, 2009, the company successfully exited chapter 11 bankruptcy.
On October 9, 2011, Boscov's re-opened its location at the Monmouth Mall
in Eatontown, New Jersey
. This marks the first expansion of the company since its contraction in 2008.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
department store
Department store
A department store is a retail establishment which satisfies a wide range of the consumer's personal and residential durable goods product needs; and at the same time offering the consumer a choice of multiple merchandise lines, at variable price points, in all product categories...
founded by Solomon Boscov in 1911. The first store was in Reading, Pennsylvania
Reading, Pennsylvania
Reading is a city in southeastern Pennsylvania, USA, and seat of Berks County. Reading is the principal city of the Greater Reading Area and had a population of 88,082 as of the 2010 census, making it the fifth most populated city in the state after Philadelphia, Pittsburgh, Allentown and Erie,...
, and today 40 stores are spread throughout the Mid-Atlantic states of Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
, New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
, Maryland
Maryland
Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, and Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
.
Boscov's, along with Belk
Belk
Belk is a department store chain founded in 1888 in Monroe, North Carolina, today part of the Charlotte metropolitan area. After the founding of the first Belk store, the company grew in size and influence throughout the South via the chain in the USA, with its stores primarily located in the...
and Dillard's
Dillard's
Dillard's, Inc. is a department store chain in the United States, with 330 stores in 29 states. Headquartered in Little Rock, Arkansas, Dillard's locations are concentrated in Texas and Florida; with a major presence in other states including Arizona, Iowa, Colorado, Wyoming, Kansas, Missouri,...
, 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
The Bon-Ton
The Bon-Ton Stores, Inc. is a regional department store company based in York, Pennsylvania, chiefly operating 275 stores, including 11 furniture galleries, in 23 states throughout the northern United States. Stores carrying its namesake nameplate serve the Mid-Atlantic and New England regions of...
. In some cities, Boscov's now competes with JCPenney, Macy's
Macy's
Macy's is a U.S. chain of mid-to-high range department stores. In addition to its flagship Herald Square location in New York City, the company operates over 800 stores in the United States...
and Sears. The current company chairman is Albert Boscov
Albert Boscov
Albert Boscov is the Chairman and Chief Executive Officer of Boscov's Department Stores.He has donated money to Penn State Berks campus for its library, and to Genesius Theatre for restoration and further improvement of its main-stage building in Reading, Pennsylvania...
.
The company, along with Philadelphia
Philadelphia, Pennsylvania
Philadelphia is the largest city in the Commonwealth of Pennsylvania and the county seat of Philadelphia County, with which it is coterminous. The city is located in the Northeastern United States along the Delaware and Schuylkill rivers. It is the fifth-most-populous city in the United States,...
station WPVI-TV
WPVI-TV
WPVI-TV, channel 6, is an owned-and-operated television station of the Walt Disney Company-owned American Broadcasting Company, located in Philadelphia, Pennsylvania, USA. WPVI has its studios located on the border between Philadelphia and Bala Cynwyd, and its transmitter is located in the...
, 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
IKEA
IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories. The company is the world's largest furniture retailer...
, 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.
History
Solomon "Sol" Boscov was a Jew who emigrated to Reading, PennsylvaniaReading, Pennsylvania
Reading is a city in southeastern Pennsylvania, USA, and seat of Berks County. Reading is the principal city of the Greater Reading Area and had a population of 88,082 as of the 2010 census, making it the fifth most populated city in the state after Philadelphia, Pittsburgh, Allentown and Erie,...
in 1911. He had $1.37 in cash on arrival in the United States. 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
Pennsylvania German language
The Pennsylvania German language is a variety of West Central German possibly spoken by more than 250,000 people in North America...
.
The first Boscov's was founded in downtown Reading as the Economy Shoe Store and Dry Goods Annex. 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. Solomon Boscov retired and was succeeded by his son Albert "Albie" Boscov as head of the company in 1968. Boscov's began opening stores in nearby counties, starting with the Lebanon, Pennsylvania
Lebanon, Pennsylvania
Lebanon, formerly known as Steitztown, is a city in and the county seat of Lebanon County, Pennsylvania, United States. The population was 25,477 at the 2010 census, a 4.2% increase from the 2000 count of 24,461...
, store in 1972.
Store Offerings
Many 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. Seven 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.Bankruptcy
Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
protection 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. In addition, Boscov's canceled plans to open a store at the Willow Grove Park Mall
Willow Grove Park Mall
Willow Grove Park Mall is a three-story shopping mall located in the unincorporated community of Willow Grove in Abington Township, Montgomery County, Pennsylvania at the intersection of Easton Road and Moreland Road...
.
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
Polartec
Malden Mills Industries is the original manufacturer of Polartec polar fleece and manufactures other modern textiles. The company is located in Lawrence, Massachusetts and also has operations in Hudson, New Hampshire.-Fire and rebuilding:...
, and Black Angus Steakhouse
Black Angus Steakhouse
Black Angus Steak and Seafood Restaurant was founded in 1964 by Stuart Anderson of Seattle, Washington. The restaurant chain is based in Los Altos, CA. -History:...
, 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.
On October 15, 2008, retired chairman and CEO Albert Boscov
Albert Boscov
Albert Boscov is the Chairman and Chief Executive Officer of Boscov's Department Stores.He has donated money to Penn State Berks campus for its library, and to Genesius Theatre for restoration and further improvement of its main-stage building in Reading, Pennsylvania...
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.
Ed Rendell
Ed Rendell
Edward Gene "Ed" Rendell is an American politician who served as the 45th Governor of Pennsylvania. Rendell, a member of the Democratic Party, was elected Governor of Pennsylvania in 2002, and his term of office began January 21, 2003...
, then governor of Pennsylvania, offered a $35 million state loan to Boscov's, funded by the United States Department of Housing and Urban Development
United States Department of Housing and Urban Development
The United States Department of Housing and Urban Development, also known as HUD, is a Cabinet department in the Executive branch of the United States federal government...
, on November 27, 2008.
On August 4, 2009, one year after the retail chain declared Chapter 11 bankruptcy protection, Al Boscov reported on WFMZ-TV
WFMZ-TV
WFMZ-TV, virtual channel 69 , is a general interest independent television station in Allentown, Pennsylvania, which is part of the Philadelphia DMA. Its studio and transmitter are located on South Mountain in Allentown.-Background:...
that the retail chain is doing okay, and that new stores are possible in 2010 despite several suppliers not being paid.
On September 18, 2009, the company successfully exited chapter 11 bankruptcy.
On October 9, 2011, Boscov's re-opened its location at the Monmouth Mall
Monmouth Mall
Monmouth Mall, an enclosed shopping center in Eatontown, New Jersey owned by Vornado Realty Trust, is located on the corner of the intersection of NJ 35, NJ 36, and Wyckoff Road . Currently, the mall has a gross leasable area of , making it the fourth largest shopping mall in New Jersey , boasting...
in Eatontown, New Jersey
Eatontown, New Jersey
Eatontown is a borough in Monmouth County, New Jersey, United States. As of the 2010 census, the borough population was 12,709.What is now Eatontown was originally incorporated as Eatontown Township by an Act of the New Jersey Legislature on April 4, 1873, from portions of Ocean Township and...
. This marks the first expansion of the company since its contraction in 2008.