ETF News

UPDATE 1-Boscov's gets approval for financing, store sales

(Adds details about store closings, financing)

NEW YORK, Aug 6 (Reuters) - Department store chain Boscov’s Inc has received interim court approval for its bankruptcy financing and to select a liquidation firm to assist it with store-closing sales at 10 locations.

Boscov’s, which describes itself as the largest family-owned, full-service U.S. department store chain, filed for bankruptcy protection on Monday, saying the economy had caused consumers to spend less on discretionary items and that credit market conditions had caused vendors to tighten up.

U.S. Judge Kevin Gross granted the company interim approval for $250 million debtor-in-possession financing from lenders led by Bank of America NA to allow the company to continue operating, according to court documents filed in U.S. Bankruptcy Court in Delaware.

The company also gained court approval to conduct an auction on Aug. 12 to select a liquidation firm to run store-closing sales at 10 “underperforming” stores.

Liquidation firm Gordon Brothers Retail Partners LLC has been approved as the “stalking horse” bidder for the liquidation rights, meaning it will be able to make the first bid at the auction. (Reporting by Emily Chasan; Editing by Brian Moss and Steve Orlofsky)