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Gov. Ed Rendell made the announcement this morning - the state is giving Boscov's a $35 million loan to help the retailer emerge from bankruptcy.
The state is using federal money from the Community Development Block Grant program. The funding is contingent on Boscov's securing other loans as part of a $300 million financing package the company needs to stay open.
Rendell says the state loan should prevent the company's 25 Pennsylvania stores from closing - and save thousands of jobs.
"We took this step because of the extraordinary reach that Boscov's has through Pennsylvania," said Rendell. "Twenty-five different cities, 13 where the stores were anchors for those cities, over 5,000 employees. It would be devastating for the State of Pennsylvania to lose Boscov's."
The governor acknowledged that the Boscov's founder has been a major contributor to his campaigns. But Rendell said the loan wasn't approved by him, but by the state's secretary of community and economic development.
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