Why Did Boscov's File Chapter 11...and What Does it Mean to You?

August 4, 9:18 PMBaltimore Fashion ExaminerChristine Epps

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Boscov’s, America’s largest family-owned independent department store, announced its filing for Chapter 11 bankruptcy Monday. It will be closing the three Maryland locations opened in the fall of 2006 (White Marsh, Glen Burnie, and Owings Mills) while the other three (Frederick, Salisbury, and Westminster) will remain open.

What happened?

1.)                          History repeated itself once again for the full-service retailer. In the 90s, reps from the company used the words “tough” and “aggressive fight” when describing the retail industry. Consumers were heavily shopping at stores such as Hecht’s, Macy’s and J.C. Penney’s. The company was struggling to stay afloat and decided to revamp marketing efforts, which resulted in great success and an expansion into new states. This however, proved to be a temporary solution for a permanent problem.

2.)                          Many of Boscov's stores contain special service departments such as hair salons, restaurants, film processing, optical/hearing centers, and even traveling agencies. In their past Boscov’s even enticed customers with college courses and club meetings, hoping customers would shop in between engagements. Without a clear, structured focus, their desire to be the number one full service retailer for every customer began to do more harm than good for the organization.

Now for the important question…what do their store closings mean to you?

More than likely, Boscov’s will generously mark down the inventory in the closing stores to avoid paying additional labor or shipping costs to transport the goods to surrounding locations. I’d be a little surprised if they advertised these store closings (after all, other retailers such as my mother’s first love, the Bombay Company didn’t do it), but it could happen.

In the meantime, frequently visit Boscov’s and keep an eye on goods you’d consider purchasing at a reduced price. Occasionally schmooze with the Sales Associates to find out the last day before the store closes and if in fact the item you’re looking to buy will be on sale (they probably care less about releasing private information right now anyway). You’re not only purchasing a great item at a reduced price, you’re also helping the Madonna of department stores reinvent themselves once again.