Boscov's Bankruptcy Puts End to 10 Stores

Boscov's bankruptcy was filed this morning. The Chapter 11 bankruptcy that Boscov's filed was seeking protection from creditors to allow the company to cut down on debt and slim the company down so that they may compete successfully and provide good and services of high quality. Boscov's bankruptcy will also allow them to set forth a plan to eliminate 10 stores that have been unprofitable to the company and they will have a liquidation sale at these stores with going-out-of-business sales. The Boscov's bankruptcy is a plan for the company to reduce the debt that they owe and hopefully cut rental payments and other overhead expenses, as reported by Philly.com.

Filling a bankruptcy like the one that Boscov's filed will help a person to eliminate debt by allowing an individual or company to not be contacted by creditors but the individual or company has a set payment that they must meet, this is a Chapter 11 bankruptcy.

In Chapter 7 bankruptcy, an individual or company eliminates all of the debt that is filed but it also can create more problems for them by making it harder to obtain credit or take out a loan.

When Boscov's bankruptcy took affect each company that was filed on the Chapter 11 bankruptcy was notified of the proceedings with the paper work filed in court that states for the companies to not contact or harass the company of Boscov, this is also done in a Chapter 7 bankruptcy.

If a company contacts the Boscov then they will be in fault of breaking the court order that was set forth by the judge and will have to pay the consequences. If the companies need to communicate with Boscov's after they filed a Chapter 11 bankruptcy they would need to contact their attorney first so that the attorney for Boscov's can be contacted.

In a Chapter 7 bankruptcy no company that is filed on the bankruptcy may contact that individual or company for any reason.

There are many reasons that Boscov's could have filled the Chapter 11 bankruptcy but the reasons that they gave made sense since some of the companies stores were causing them to go under.