Find us on Facebook
Follow us on TwitterBad blow for retailer
Sarah Arkin/Register & Bee
Sales signs are seen Monday at Boscov’s in Danville. The company announced Monday it is filing for bankruptcy and Danville’s store is one of 10 that will close.
Published: August 4, 2008
Updated: August 4, 2008
Boscov’s Inc.’s decision to close its Danville department store within a few weeks could leave a huge void at Piedmont Mall.
The company announced Monday that it will file for bankruptcy and close 10 of its 49 stores.
Boscov’s spokeswoman Maralyn Lakin didn’t give a specific date for the closing of the Danville store when contacted Monday, but said it would be open for a few weeks while the company gets business in order.
On Monday, the store looked stocked, and almost every item was on sale.
The 87-year-old Reading, Pa.-based company cited current economic conditions as the primary reason for filing for Chapter 11 protection.
“The downturn in the overall economy and consumer spending along with the serious credit market crunch have put severe pressure on our company’s financial position,” Ken Lakin, chairman and CEO of Boscov’s, said in a written statement.
Depending on the time of year, the Boscov’s store in Danville employs anywhere between 130 and 150 people, store manager David Hick said Monday.
Boscov’s announced in May 2004 that it would bring a retail department store and an additional 62,000 square feet of retail space to Piedmont Mall with its two-story sales floor and third-floor storage space.
Several stores, including Victoria’s Secret, MasterCuts and Ben David Jewelers, relocated to make room for the expansion.
The department store officially opened in Danville in November 2005, making it the only Boscov’s location in the state.
Along with a slew of other stores and companies setting up shop in Danville in 2004 and 2005, the city’s economic development department offered Boscov’s an incentive package to open its doors at the Piedmont Mall.
Interim City Manager Lyle Lacy said Monday that the incentive package was to be doled out over a multi-year period that hasn’t yet been completed. Boscov’s had to pass certain benchmarks to get funds, he added.
The company had to employ 200 full-time and 100 part-time employees to get money, but never hit those numbers, Lacy said.
Economic Development Director Jeremy Stratton said he had no prior knowledge that the store was going to be closing, but had heard rumors.
“You always hate to see when you take a couple of steps forward and one step back,” Stratton said Monday.
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 Feb. 2.
The 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.
Contact Sarah Arkin at or (434) 791-7983.
Advertisement
Reader Reactions
The shame is that the Danville store was making a profit but some people are not to brite and they shut the more distant profitable store down to keep a more local unprofitable one open. A great big Carlos Mencia Deedeedee goes out to Boscov’s Upper management.
I really hate this. It’s a beautiful store, and I have really enjoyed shopping there.
I am sorry Boscov’s will close. I enjoy shopping there. They carry the brands of apparel that I like. The clerk’s are cheerful and helpful.I am afraid they won’t be the last store to close in Danville.
It is sad that Boscov’s is closing. I cannot for the life of me wonder why another chain hardware store and pet care store have opened in Danville, given the current state of the economy and the perpetually poor economy here.
What a shame about this store. Unfortunately, one could see that over the last 2 years there were less staff on the floor and that the merchandise selection in some departments was not as it was when they first opened. You see the same thing happening in other stores. Danville cannot support them. I believe that Coleman Marketplace will be the end of several businesses here. Especially with today’s economy. Record numbers have lost their job. I hear that people are going to Target and leaving to go shop at WalMart because their money will go farther. I have heard several people say they went to Home Depot and left and went to Lowe’s because they had better prices. It is possible that some retailers that are here may put some of the Coleman Marketplace retailers out of business. In the end, what will we have gained? They open, others close. They open, they close. All that money that could have eased the rate increases on our utilities going into Coleman Marketplace. I would rather have a reduction in my utilities, which, by the way, just increased (yes another increase in what we pay) about $100 in 1 month (over the other increases we have had). Owe $60 for wastewater? Unbelievable!
This is sad. I love that store.
Really hate to see them go I have enjoyed shopping at there Danville location
I am so sad to hear this. Boscov’s is the best store out there. The nicest quality with good prices. I’m sorry that more people evidently didn’t find this out. Good luck Boscov’s with your restructuring process.
Advertisement