Boscovs & Bankruptcy

Struggling economies can damage large businesses.

Boscov's is a large department store in the United States. Stores in this retail chain are located in New York, Maryland, Virginia, Pennsylvania, New jersey and Delaware. In 2008, the company suffered economic blows due to a poor economy.

Filing

In early August of 2008, Boscov's filed for Bankruptcy Protection (Chapter 11). This allowed the stores to reorganize and regroup without closing down entirely. However, all large decisions must be approved by bankruptcy court systems. Nearly 20 percent of Boscov stores closed in the process.

Improvements

In January of 2010, nearly 250 new salespeople were given jobs with Boscov's. This expanded the company and provided the stores with heightened customer service. A low price guarantee was also put into place in October 2010. If a customer can prove Boscov's price for a particular item is not the lowest in the market, the difference in price will be doubled.

Increase in Sales

At the end of March in 2010, sales were reportedly increased by nearly 12 percent. In April 2010, Boscov's decided to expand its inventory and create its own unique Easter gift baskets. This drove candy sales up at Boscov's nearly 40 percent.

References

• The Times-Tribune: Boscov's Rises From Bankruptcy to Even More Growth
• USA Today: Retailer Boscov's Seeks Bankruptcy Protection

Resources

• SEC: Corporate Bankruptcy