SAN FRANCISCO Nov 4 Boscov's Department Store
LLC said on Tuesday it had signed an asset purchase agreement
for the sale of nearly all of its assets to a family group led
by Albert Boscov and Edwin Lakin.
The department store chain, which filed for bankruptcy in
August, also said it had terminated a previously announced
agreement with Versa Capital Management Inc.
"As we move toward the completion of our restructuring
process, Boscov's will be well-capitalized and have the
resources to build a stronger and more competitive business,"
said Boscov's Chief Executive Ken Lakin in a statement.
Founded in 1911, Boscov's is a family-owned U.S. department
store chain with 39 locations on the East Coast. The company,
which has been closing stores as part of its restructuring
plan, had struggled to find new equity investors, and was hurt
amid lower consumer spending and tightened terms by vendors in
the economic downturn.
The Lakin and Boscov families "will soon be able to
conclude a formal financing agreement," the statement said,
adding that the parties hope to close the transaction before
the end of the month.
Albert Boscov is the uncle of Boscov's chief executive, Ken
Lakin. Edwin Lakin is his father.
A Nov. 5 hearing to authorize the Boscov's sale was
canceled and rescheduled to Nov. 13, according to court
The Versa deal called for Boscov's to sell most of its
assets for $11 million in cash and the assumption of debt.
According to that agreement, Versa is eligible to receive a $4
million break-up fee.
With sales of $1.25 billion in the year ended Feb. 2,
Boscov's had $538 million of assets and $479 million of
liabilities as of May 3, according to court filings.
In the last year, more than a dozen other U.S. retailers
have gone bankrupt, including Goody's Family Clothing Inc,
Linens 'n Things Inc, Mervyn's LLC and Shoe Pavilion Inc
(Reporting by Alexandria Sage; editing by Gunna Dickson)