BREAKING NEWS-Boscov's files for bankruptcy protection

A Pennsylvania-based retailer has filed for bankruptcy protection. Reading-based Boscov's and 7 affiliates filed for Chapter 11 this morning in Delaware. The company has $538 million dollars in assets and $479 million in liabilities according to court filings obtained by Reuters news service. Rumours of financial troubles began circulating about the company after an article appeared in the New York Post. A company executive, Michael Hughes, said that Boscov's will close 10 unprofitable stores, and is exploring a possible sale to a third party. The company cites the housing market collapse, skyrocketing energy prices and higher food costs as reasons for consumers to spend less at their 49-stores in 6 states. The company is working on financing to remain open during the bankruptcy and to raise new capital. Boscov's expect to emerge from bankruptcy next year. Founded in 1911, Boscov's employs about 95-hundred people, and had sales of $1.25 billion dollars in the last fiscal year.