Bankruptcy judge OKs bonuses at Boscov

September 6, 2008

Boscov's Inc., a Reading, Pa.-based department store chain, received court approval for a plan to pay $1.45 million in incentive bonuses to six executives, over the objections of the U.S. Trustee in the bankruptcy case. U.S. Bankruptcy Judge Kevin Gross in Wilmington, Del., granted the company permission yesterday to pay the bonuses if certain targets are met, according to the court docket. Under the incentive program, the six executives could receive from 20 percent to 50 percent of their annual salary if a Chapter 11 plan is approved by the end of February or a going-concern sale is completed by early January. The company filed for bankruptcy protection last month with seven affiliates after failing to refinance debt. The chain is closing 10 stores, including three in the Baltimore area. Boscov's said it had sales of $1.25 billion last year. The retailer, founded in 1911, listed $538 million in assets and $479 million in debts as of May 3 in an Aug. 4 court filing.

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