The Boscov's Department Store chain had its most profitable December ever, but the company's chairman said it still needs the $35 million in loan guarantees it negotiated with the state of Pennsylvania to help it get through what promises to be tougher months ahead.
Some counties have recently hesitated to sign on to what is commonly viewed as a "bailout" over concerns they could be left with the bill if the chain should fail. Pennsylvania economic development officials recently met with county representatives to offer assurances that it would be the state on the hook should Boscov's not make it.
So far, however, Boscov's is off to a surprisingly strong start.
Al Boscov, chairman of the chain, told The Patriot-News, "Everyone makes profit in December. We all lose money in January. But I can tell you that our December and January combined will be profitable."
"That's surprising in today's recession. In fact, it's shocking," said Audrey Guskey, a Duquesne University associate professor of marketing.
"I think it's really good news for all of Pennsylvania, because it suggests maybe our economy isn't as bad as it seems," she added.
Discussion Questions: What are your views on the Boscov's bailout? Should governments be stepping in to help retailers survive?