Boscov's signs pact for sale to Versa
PHILADELPHIA, Sept 18
PHILADELPHIA, Sept 18 (Reuters) - Boscov's Department Store LLC, the U.S. department store chain that filed for bankruptcy protection last month, said it signed a letter of intent for a sale of most of its assets to private equity firm Versa Capital Management Inc.
The terms of the deal were not immediately available.
Under the bankruptcy procedures, Versa will serve as the "stalking horse" bid that sets a minimal level for any other offers. The auction process will be overseen by the U.S. Bankruptcy Court in Delaware.
Boscov's said it was in the process of negotiating a definitive agreement with Versa and any deal is subject to financing. A higher offer also could emerge in the auction process, Boscov's said.
Founded in 1911, Boscov's is a family-owned, department store chain, operating in Pennsylvania, Delaware, Maryland, New Jersey, New York and Virginia.
The company previously said it suffered from the housing market collapse, skyrocketing energy and gas prices and higher food costs that caused consumers to spend less on discretionary items. The weak credit market conditions caused many vendors to tighten terms, the company has said. (Reporting by Jessica Hall; Editing by Andre Grenon) (For more M&A news and our DealZone blog, go to here)
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