Reading, Pa. Regional department store chain Boscov's won court approval Thursday to bring its Chapter 11 bankruptcy case to a successful conclusion, according to the Associated Press.
Judge Kevin Gross approved the company's plan to resolve all outstanding claims from creditors. The plan allows the emergence of a new Boscov's by providing for the transfer of the old company's assets to a trust that will make distributions to claims holders.
"It really is a remarkable case to have a retailer successfully confirm a plan," said the judge.
Boscov's filed for Chapter 11 protection in August 2008 and announced that it would close 10 of its 49 stores.
Last year, Gross approved the sale of Boscov's to the families of Albert Boscov and Edwin Lakin, the son and the son-in-law of the privately held company's founder. The deal, which saved the company from liquidation, was valued at between $275 million and $300 million. The company received about $200 million in bank financing, as well as personal-equity contributions of more than $60 million by the Boscov family.