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Pocono News Section
Boscov's Bankrupty Woes Continue
Boscov's Bankrupty Woes Continue - Saturday, January 24, 2009 at 3:39PM EST
Reported by: Kyla Campbell
Saturday, Jan 24, 2009 @ 03:39pm EST
WILKES-BARRE, LUZERNE COUNTY -- Boscov's department store in Wilkes-Barre is a downtown staple. The chain is getting financial help, but two counties aren't chipping in.
"Mr. Boscov is a fixture in their communities, and he's been a tremendous asset to the city of Wilkes-Barre," said Mayor Tom Leighton, "Not only with the department store, but with the Kirby Center and other things he's supported over the years."
That's why the cities of Wilkes-Barre and Scranton have each pledged $3 million to help the store. He talked with key Boscov's officials this week, and they all hope Butler and Schuylkill Counties change their mind.
"All stores need help at some time," said Greg Thompson of Wilkes-Barre. "Right now, the economy is bad, and they need help."
"It's very important to the Boscov chain that we get help from all the towns and all the counties that would be affected if the store was to close permanently," added Leighton.
Mayor Leighton reminds people the money given to Boscov's is federal money, but counties and cities get to choose where it goes. And if Boscov's falters, the state picks up the bill. Ultimately, Leighton says, the money helps employees and customers.
"It would take many years to fill that spot and also cost more money than the money we're guaranteeing," said Leighton.
But Boscov's is asking for help at a time when we've been told people are getting laid off. At least one employee from the Wilkes-Barre store, and another from Scranton, told us they were let go last week, and the expect dozens more to be laid off. But there's no confirmation from corporate.
"If there are layoffs in the immediate future in the Boscov's chain, I would not be surprised," said Leighton. "However my position would not change. Banks are being stringent, and it's important that they cut back on their expenditures, and unfortunately, layoffs will happen."
But he and others hope for the same outcome.
"If they're grateful enough to get the money and allow the people to come back, then it would be a great help," said Thompson. | | |
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