Late last year Boscov’s filed for bankruptcy. The owner, Al Boscov, at that time, was reported to have a net worth of over $100 million. Pennsylvania counties have been lobbying to award the retailer with $35 million in so-called loans, that I call a bailout, for a few weeks now.
I rejoiced when two counties finally said NO to the retailer, but my excitement was short-lived when I found out that the county in which I live, Schuylkill County, would then be asked to give the company even more funds. Instead of investing their money with this company, the loan providers should be offering private education loans, which will help millions of deserving students to pursue their dreams.
Just a few months after all this craziness began the retailer reports a $26 million profit in December. And my complaining continues.
December 2008 was the largest December profit the retailer has ever seen. When hundreds of other companies have already reported significant December losses, the so-called bankrupt department store has its best holiday season ever.
Now I state my claim again. The man is to be worth $100 million, and in one month time was able to pull a profit of $26 million. Why oh why would the state offer them a $35 million loan paid for by 7 counties, and argument ably the Pennsylvania taxpayers.
Boscov will meet with politicians from Butler County this week, along with some state officials, to seek their support for the loan. This is the time to stand up and say NO. If they can pull profits of $25 million then they do not need a loan, a bailout, a handout, or any other help.
In fact, bankruptcy protection should be pulled. It is disgusting that just a few months after filing bankruptcy, and weeks after asking for federal and state aid, the company pulls in and brags about such profits.
I wouldn’t doubt if next week they buy some fancy high price corporate luxury jet and fly off to some island somewhere as a ‘bonus’ for having such a great December.
Where does it end? When does it stop? When do the people, the taxpayers, the citizens get financial bailouts? I spoke with six people at a local event two days ago. Four of them said they should file bankruptcy, and three of them said they couldn’t afford the fee to do so.
Obama should stop this crap with the bailouts and the aid to individual retailers. Government programs and state aid is one thing, but to individual retailers, that is unnecessary and wasteful. That money is better off in the hands of the consumer, and putting these wasted bailout funds in consumer’s hands is the only way the economy is going to recovery in a timely fashion. If it keeps up, the United States will be the new third world country.
Just Say No To Boscov’s!