"Boscov's is looking at a range of options to improve its financial base and at this point, it would be premature to comment on what course it will take," the spokeswoman says. "It is Boscov's goal to complete the restructuring process as soon as possible. The company intends to begin work immediately with its creditors and other constituencies and file a plan of reorganization by later this fall."

In a press release, Kenneth Lakin, chairman and CEO of Boscov's, cites "the downturn in the overall economy and consumer spending along with the serious credit market crunch." He adds "we have made the strategic decision to utilize a Chapter 11 filing to proactively address our capital structure. As we progress with the restructuring, our stores and website will remain open for business."

Boscov's has secured an agreement in principle for $250 million in debtor-in-possession financing from Bank of America. It is intended "to support healthy merchandise flow as the company prepares for the back-to-school and holiday selling seasons," according to the release.