Boscov's successfully emerged from bankruptcy reorganization on Thursday.

A judge in U.S. Bankruptcy Court in Wilmington, Del., approved the Reading, Pa., department store company's plan to resolve creditor claims.

The plan, which was approved by creditors, will transfer assets to a trust that will pay off creditors.

Boscov's sought Chapter 11 bankruptcy protection in August 2008, at the time closing 10 of its 49 stores. In December, the company was sold to the families of Edwin Lakin and Albert Boscov, son of the department store chain's founder, at an estimated cost of $275 million to $300 million. Albert Boscov, 80, who retired as CEO in 2006, returned as chairman and CEO.

Boscov's was founded in 1921 by Solomon Boscov. Today, the retailer has 39 stores in Pennsylvania, New Jersey, Delaware, New York and Maryland.