Boscov's, BrainBusters, and Bailouts

Schuylkill County commissioners unanimously agreed to approve nearly $6 million in 'aid' to Boscov's in an effort to help save the store location in Fairlane Village Mall. With as many as six other Pennsylvania counties voting on Boscov's bailouts, the total would come to approximately $35 million to the retailer.

I have previously written about my thoughts about this local bailout, as I believe it is a bailout. I don't think the store should receive such a pat on the back for running itself into the ground, but it ultimately is not my call.

Bsocov's filed for bankruptcy protection last year. They have now reportedly put up $100 million in collateral along with the $35 million in bailout funds, or loans as the county seems to like to have the funds called.

Today I was lying in bed watching WGAL as I faithfully do. There is a local game show, of sorts, on the television station called BrainBusters.

Sponsored by Capital Blue Cross, BrainBusters has teams from area schools compete against each other in a Jeopardy type style. The groups of high school students would answer questions about history, geography, science, and more in an effort to gain points. At one point during the game they 'wager' a portion, or all, of their points against how accurate they believe their answer to a question is.

I have watched this show a few times as I lay in bed waiting to fall asleep after a long night at work. A portion of the show also offers you to point your browser to WGAL and answer a question correctly to possibly win a blue fleece blanket from Capital Blue Cross.

The winning team receives scholarship money from Capital Blue Cross and the Pennsylvania State System of Higher Education, among other great prizes.

I thought this show was wonderful, and in fact, I still do. Capital Blue Cross deserves excellent recognition for this program. But, today I heard something a bit disturbing.

Near the end of the show the host thanks Capital Blue Cross for being a great sponsor, as they should. Then the host says they would also like to thank the 'newest sponsor, Boscov's'.

Oh please, oh please, tell me I heard wrong. Nope, I did not.

How is it, that after filing for bankruptcy protection, and being approved for government bailout funds, they are throwing money into sponsorship of anything?

I understand bankruptcy or not that a company needs to advertise. Newspapers, television, web sites, or even direct mail is what comes to mind. Is the sponsorship and advertising ploy?

Regardless of the uniqueness the show delivers to our area, and the fact that it helps some wonderful schools and the area's gifted students, the company should not be delivering funds to sponsor anything at this point.

Boscov's needs to get out of bankruptcy, give back the bailout funds or reject them, and stand on its own two feet.

Put a different spin on the situation. As an individual, if you file bankruptcy your funds are now watched. You may later, in court, have to explain where and how you are spending your money, as well as explain why you can no longer pay your creditors.

If, as a person, you file for bankruptcy then proceed on the lifelong earned cruise to the Bahamas, your bankruptcy is likely to be denied, or thrown out. File for protection, then open a new line of credit, or buy a new car, remodel your house, or write a check to sponsor a local charity. You will be ridiculed and court ordered to pay all creditors past and present without the protection of a bankruptcy filing.

Yes, even donating to a charity, you could find yourself in more trouble than you have imagined.

Should Boscov's receive bailout funds? Absolutely not. Should their bankruptcy protection stand when apparently they can afford to sponsor a program, any program, it didn't have to be this one. No way.

The government needs to wake up. We all know there is a credit crunch in the midst of this financial crisis in the United States. Americans are finding it harder than ever to borrow money even for those who are 'credit worthy'. Loans, in the smallest amounts, are being denied without any real reason other than the economy.

Yet, the government is going to filter $35 million to Boscov's, who just filed bankruptcy, and just closed multiple stores, without blinking an eye.

The bailouts are ridiculous. Boscov's is ridiculous, and I hereby boycott that store, I don't care if they give away $100 pair of jeans to everyone who shops their that day, I will not be found in the check out lines.

Boscov's should never have been allowed to sponsor anything, or anyone, given the current situation.

The only thing good to come out of this story is the high school students that are participating on BrainBusters are earning prizes for their school and scholarships for their future. That is truly wonderful.

sources:

https://www.capbluecross.com/PressRoom/NewsReleases/2008NewsReleases/121008-BrainBusters300th.htm

http://www.republicanherald.com/articles/2009/01/10/news/local_news/pr_republican.20090110.a.pg1.pr10commissioners_s1.2218687_top3.txt