With the company in bankruptcy, Boscov's top executives won't get their regular bonuses this year.

But they might get something extra after all.

Boscov's wants to pay its top six executives "success payments" totaling $1.45 million if the company gets out of bankruptcy or is sold by early 2009.

In a court filing last week, Boscov's says its top executives are working on the bankruptcy case and a possible sale — plus running the business.

So the success payments would "compensate the Senior Executives for these extraordinary efforts, especially in the face of the loss of the (pre-bankruptcy) incentive plan. ..."

The payments, the filing continues, "are appropriate to properly compensate and motivate the Senior Executives to reach a transaction ... in short order and to maintain (Boscov's) business pending such transaction."

A hearing on the proposal is set for 10 a.m. Sept. 5 in U.S. Bankruptcy Court in Wilmington, Del.

Reading-based Boscov's says a committee representing its unsecured creditors supports the proposal.

The 49-store chain, with annual sales of $1.3 billion, filed for bankruptcy reorganization Aug. 4. It is closing 10 of those locations, although its Park City Center store will remain open.

Receiving success payments would be CEO Kenneth S. Lakin, executive vice president Michael J. Hughes, chief financial officer Russell C. Diehm, senior vice president Samuel Flamholz, chief merchandising officer Burton C. Krieger and director of stores Gary Boyer.

They'd receive payments equal to 20 to 100 percent of their annual base salary if the court confirms Boscov's reorganization plan by Feb. 28 or the business is sold by Jan. 6.

Boscov's says extra payments to executives who achieve such goals are "common" in bankruptcy cases.

In the past, Boscov's paid bonuses to executives if the company hit certain levels of profit, before interest, taxes, depreciation and amortization are deducted, a figure known as EBITDA.

Boscov's EBITDA this year will fall short of the bonus-triggering target "as a result of the current meltdown in the retail industry and the costs" of the bankruptcy case.

The filing did not say how much those profit-based bonuses would have been.

In a related development, Boscov's is expected to receive court approval at the Sept. 5 hearing to hire investment banker Lehman Brothers to find possible buyers.

Boscov's has been using Lehman Brothers since May. But now that it's in bankruptcy, Boscov's needs court approval to pay the firm.

Boscov's proposes paying Lehman Brothers $250,000 a month, according to a court filing. If a sale occurs, Lehman Brothers would get a fee equal to 1.5 percent of the price, minus the monthly retainer payments.

Staff writer Tim Mekeel can be reached at tmekeel@LNPnews.com or 481-6030.