Posted on July 17, 2020 at 2:45 p.m.
Boscov’s is moving forward with plans to defer payment of a $ 4.73 million federal loan that dates back to coming out of bankruptcy in 2009.
Schuylkill County Commissioners, representing one of the six counties involved in the loan, approved the plan on Wednesday.
Boscov plans to waive a loan payment of $ 324,000 due August 1 due to COVID-19. Stores were closed for more than two months while the virus was shutting down.
The missed payment will be spread over the remaining eight years of the loan term.
“There is a lot of paperwork to fill out, but realistically all that happens is Boscov is allowed to pay the down payment they were due in August on the remaining part of the loan from one year, “said Glenn Roth, deputy county attorney.
The loan was a one-time arrangement in which Boscov received block grant funds for county community development in order to come out of Chapter 11 bankruptcy. The state has pledged to guarantee payments in the event of Boscov defaulting on the loan.
This is the first time the business has missed a payment on the loan.
Boscov’s has 26 stores in Pennsylvania, as well as branches in Connecticut, Delaware, Maryland, New Jersey, New York, Ohio and Rhode Island.