Boscov's to close at Marley Station | Maryland Gazette (HometownGlenBurnie.com)

Susan Kenney, a spokesman for the Reading, Pa., company said the Glen Burnie location and the others would be shut down gradually over the next few months. The store employs 125 people.

Although Boscov's has been a part of the local retail scene only since October 2006, shoppers at Marley Station on Monday said they would miss it.

"I'm very upset," said Donna Hall, a Pasadena resident shopping at the store. "The employees are helpful and courteous and they have good prices."

The announcement comes at a time when businesses across the nation and the county are feeling the pinch of a weakening economy and cutbacks in consumer spending.

Boscov's opened in Glen Burnie with fanfare in October 2006. It followed a tangled shuffling of stores that began a year earlier following the merger of Federated Stores Inc. and May Co. Department Stores. The newly merged company closed the Hecht's at Marley Station as part of a consolidation, and moved Macy's into its space.

The Marley Station Boscov's was one of three stores opened in the Baltimore area, although the chain has locations in Western Maryland and on the Eastern Shore. The locations in Owings Mills and White Marsh also will close.

Tom Saquella, president of the Maryland Retailers Association, said the closing comes after the worst year for retailers he's seen in almost 25 years.

"It really started in the last quarter of last year and became critical in the fourth quarter," he said.

Boscov's said it filed for Chapter 11 bankruptcy reorganization yesterday because of credit problems and slack consumer spending. The company acknowledged that some of its suppliers had stopped shipping merchandise to the company.

Mr. Saquella said Boscov's was new to the Baltimore area and didn't have time to establish itself before a souring economy made it clear the new stores weren't making the numbers needed.

Boscov's touted itself as different from major competitors such as Macy's, with small, subtle touches. Unlike most department stores, Boscov's maintains a toy section. It also has a candy section that sells store-made fudge. A customer could have any purchase giftwrapped free of charge.

Kenneth Lakin, CEO of Boscov's, called the Baltimore area a natural for the chain's expansion in the fall of 2006.

"We've been looking at the entire Baltimore market for a number of years," he said. "(Maryland) is a growing state and the Marley Station area in particular has shown some growth lately that we think is going to continue."

But the store opened not only as the economy was souring, but as the retail scene was changing. Brand name department stores such as Montgomery Ward and Hecht's have disappeared as shopping patterns changed.

Lower-priced stores such as Wal-Mart, which recently opened a super center in Severn a few miles from Marley Station mall, continue to do well, Mr. Saquella said.

Middle-market stores such as Boscov's and independent retailers are the ones suffering.

He predicted that it would be difficult for Marley Station to fill the space quickly, in part because department stores and general merchandise stores that take mall anchor-spots are hurting. He predicted it could be next spring before it's filled.

Bob Burdon, president and CEO of the Annapolis and Anne Arundel County Chamber of Commerce, said Boscov's closing is another sign that discretionary spending by consumers is slowing in the county.

"Families are just watching every dollar and every penny now," he said.

A spokesman for Marley Station mall did not respond to requests for comment.

Dr. Daraius Irani, director of applied economics for the Regional Economic Studies Institute at Towson University, said Boscov's is a mid-level department store hurt not only by the slowing housing market, but also by competition from Target and Wal-Mart stores that moved into the chain's territories.

Boscov's also suffered from an "identity crisis" as Target and Wal-Mart remained recognizable brand-name stores that offer a growing variety of products at affordable prices.

"People don't think of (Boscov's) when they want to go shopping, necessarily," Dr. Irani said. "Stores that can't compete on either brand name or price are really going to take it on the chin."

Boscov's, America's largest family owned independent department store, noted in the release that filing for Chapter 11 protection gives it the tools and time to strengthen its balance sheet.

Boscov's said it has secured $250 million in debtor-in-possession financing from Bank of America, which will allow it to pay for shipments of merchandise for the back-to-school and holiday shopping seasons.

Other stores closing include five stores in Pennsylvania, one in New Jersey and one in Virginia.

Problems at Boscov's mirror struggles that mid-level department stores are having across the country, Dr. Irani said.

"I suspect that this won't be the first shakeup," he said.

Staff Writer Katie Arcieri and the Associated Press contributed to this story.