Boscov's receives approval for DIP financing

READING, Pa. Boscov’s has announced that the U.S. Bankruptcy Court for the District of Delaware entered a final order approving the company’s $250 million Debtor-in-Possession financing from Bank of America. The approval, granted during an Aug. 29 hearing before Judge Kevin Gross, provides Boscov’s with access to the capital necessary to meet its ongoing financial obligations during the restructuring process.

The approval of the DIP facility ensures that Boscov’s will continue to operate without interruption and that merchandise flow and vendor relations will also continue to run smoothly as the company prepares for the holiday selling season.

“The court’s approval of the DIP financing is an important step forward in our restructuring process,” said Boscov's chairman and ceo Ken Lakin. “We are grateful for this vote of confidence as we normalize relations with vendors and provide our customers with the wide selection, great prices and warm personalized service for which Boscov’s is known.”

Boscov’s filed to reorganize under Chapter 11 on Aug. 4 in the U.S. Bankruptcy Court for the District of Delaware. Interim approval of the DIP financing was granted on Aug. 5.