Boscov's Inc. will turn over operations of its three Baltimore-area department stores by midmonth to a liquidator that will begin selling off inventory in a two-month store closing sale.
Hurt by slumping sales, the department store chain filed Monday for Chapter 11 bankruptcy protection and said it would close 10 stores, including anchors in three of Baltimore's largest shopping centers: White Marsh Mall, Owings Mills Mall and Marley Station.
Three other stores in Maryland - in Westminster, Frederick and Salisbury - will remain open.
Yesterday, a Boscov's executive said the family-owned company is continuing to explore reorganization options such as selling the Reading, Pa.-based chain or bringing in investors.
"We're looking at every opportunity," said Maralyn Lakin, senior vice president of marketing and public relations. "The family would like to stay involved in the business."
Firms that handle store liquidations have made bids to the bankruptcy court to purchase the merchandise and fixtures at the 10 Boscov's stores slated for closing, Lakin said. The bankruptcy court must select and approve a liquidator, which Lakin said could happen by the middle of this month.
Typically, liquidators quickly bring in experienced management teams to handle store closings, setting prices that become more steeply discounted each week over a set period, usually eight to 10 weeks, said Mark Millman, president of Millman Search Group, an Owings Mills executive search firm specializing in retail.
"They can be up and running in less than a week; they have people on hold all across the country," Millman said. "The first couple of weeks is when they will try to make the major money, when people are flocking in, and that's when there's a lot of inventory and a lot of selection."
Everything will be for sale, including store fixtures, so the mall owners end up with a broom-clean space.
Retail experts warn that store closeouts don't necessarily offer the best bargains for consumers.
Shoppers seeking bargains in the Baltimore stores' final weeks should expect a different atmosphere than at the Boscov's they have come to know. There likely will be fewer salespeople to offer help and, toward the end of the sale, the liquidator might bring in merchandise from elsewhere to sell.
