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Boscov's starts liquidation sales at 2 stores tomorrow
Friday, August 15, 2008

Store-closing sales are scheduled to start tomorrow at Boscov's locations being shuttered as part of the Reading department store operator's bankruptcy reorganization.

Liquidators have received court approval to begin clearing out inventory at the 10 affected locations, including stores at South Hills Village and Monroeville Mall. A joint venture led by Gordon Brothers Group and Hilco Merchant Resources will run the sales, according to an official statement.

"Merchandise will be marked down to sell fast. Everything must go," said Stephen Miller, principal and managing director at Gordon Brothers.

Typically such sales start by offering a certain percentage discount, with prices dropping as the liquidation goes on. The sellers want the highest profit margin possible while customers get lower prices but fewer choices as the sale winds up.

Earlier this week, Boscov's filed required notices with the state warning of impending layoffs at the affected locations. The notices indicated 129 jobs would be lost as a result of the Monroeville store closing and 175 at South Hills Village, probably by mid-October.

Boscov's, which has a total of 49 stores, filed for Chapter 11 bankruptcy protection in Delaware two weeks ago. The family-owned company said the filing would give it the needed tools to normalize relations with creditors. Stores being closed were underperforming, the company said.

First published on August 15, 2008 at 12:41 pm
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