Aug 4, 2008 6:19 pm US/Eastern
Retailer Boscov's Plans To Close 10 Stores
READING, Pa. (WJZ) ―
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Boscov's will close 10 of its 49 stores.
Boscov's
The economic downturn hits a department store chain where it lives.
Pat Warren reports Boscov's announced it's closing the three stores it opened in the Baltimore area two years ago.
Just a week ago, Boscov's chairman reported layoffs at company headquarters. On Monday, it cut even deeper.
Maryland shoppers considered it good news when Boscov's expanded into Baltimore two years ago.
The department store took over space vacated by Macy's when Macy's moved into Hecht's stores in Owings Mills, Marley Station and White Marsh malls.
Despite variety and reasonable prices, the stores didn't last. The economy, credit issues and sluggish consumer spending are forcing the store to close up shop.
"It's kind of sad actually. I mean they're kind of new to this area," said one shopper.
In a statement, the company's CEO Ken Lakin said, "Despite the cost savings, a great workforce and loyal customers, 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."
It will be particularly devastating news for workers who saw Boscov's as a life preserver when Hecht's was absorbed by Macy's.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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