Boscov’s, Inc.

Client Profile
Boscov’s, Inc. (“Boscov’s” or the “Company”), headquartered in Reading, PA, operates family-oriented department stores that feature quality, national brand merchandise priced to provide value for customers. Since its inception in 1911, the Company has remained family-owned and today ranks as the largest independent and privately held department store in the U.S. Boscov’s currently operates 39 stores in Pennsylvania, New Jersey, Maryland, New York and Delaware.
Situation
Due primarily to the purchase of ten stores which underperformed (and which were subsequently closed), the Company filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware on August 4, 2008 and had been operating as a debtor-in-possession since that time.
Solution
SSG was retained by the shareholders of the Company (the Boscov and Lakin families) to raise the requisite capital to buy the business out of bankruptcy. In one of the worst retail and credit environments in recent history, SSG worked with the families to deliver a $210 million senior credit facility, $50 million in equity from the families and other equity participants and a $47 million loan to bridge to funding under the Federal HUD 108 program. In a time when many retailers have been unable to survive bankruptcy, the sale of Boscov’s as a going concern is a true holiday success story that was made possible by the collective efforts of the lenders, investors, professionals and state and local governments who worked hard to get the deal closed.