Aug. 5--A brutal environment for department stores claimed another victim yesterday as the Reading-based Boscov's Department Store chain moved to use the bankruptcy court process to try to stabilize relations with vendors and survive the economic downturn.

As a result, the 49-store retailer will exit Allegheny County just two years after its arrival. Boscov's is planning to close 10 underperforming stores, including sites at Monroeville Mall and South Hills Village that employ a total of about 300 full- and part-time workers.

The Chapter 11 bankruptcy reorganization filing in Delaware early yesterday may signal just how painful the current retail market is at the moment, according to industry observers.

Boscov's has long been a survivor, one of the few family-owned regional players still around after years of closings and consolidations.

But recent months have seen bankruptcy filings at chains such as Linens 'n Things, Sharper Image and Steve & Barry's. Many players in the department store sector have reported declining sales at established stores and, just last week, the Mervyns department store chain in California filed for bankruptcy.

Last month, Macy's executives received a letter from Chairman Terry Lundgren meant to reassure them that things were on track despite tough times.

"The department store segment is not going to get better," predicted Howard Davidowitz, chairman of Davidowitz & Associates Inc., a national retail consulting and investment banking firm headquartered in New York.

Not long ago, reports surfaced that Boscov's was having difficulty paying creditors. "This sort of becomes a self-fulfilling prophecy," said Mr. Davidowitz.

Heading into the key back-to-school and holiday shopping seasons, Boscov's needed supplier support. But many have been pinched by tight credit markets and rising expenses, and they're stretched meeting the needs of national chains such as Macy's, J.C. Penney and Kohl's. "The regionals get squeezed," said Burt Flickinger, managing director of Strategic Resource Group, a retail consulting firm in New York.

According to the company's court filing, its largest creditors include Jones Apparel Group, Adidas, Levi Strauss & Co., Polo and Serta Mattress Co.

The bankruptcy process should help "normalize" relations with vendors, as well as allow Boscov's to close weaker stores, revisit certain agreements and generally stabilize the situation. With $250 million in debtor-in-possession financing from Bank of America, the company expects to establish a steady flow of merchandise, as well as the ability to pay salaries and otherwise maintain operations.

How quickly the company, the court and creditors move to get money flowing could impact Boscov's chances for emerging successfully from bankruptcy.