Boscov’s, a retailer that filed for Chapter 11 bankruptcy in August, announced Nov. 4 it has signed an asset purchase agreement (APA) for the sale of “substantially all of its assets” to a family group led by Albert Boscov and Edwin Lakin. Boscov’s also said it has formally terminated a previously announced agreement with Versa Capital Management.
According to published reports, the Versa proposal 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.
“I believe that this agreement maximizes the value of our business and the return to our creditors. It also provides certainty about the future direction of our company,” said chairman/CEO Ken Lakin in a release.
“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,” he said. Albert Boscov is the uncle of Ken Lakin; Edwin Lakin is his father.
A Nov. 5 hearing to authorize the Boscov’s sale was rescheduled to Nov. 13, according to court documents. Company officials hope to receive bankruptcy court approval and close the transaction by the end of November.
Founded in 1911, Reading, PA-based Boscov’s has stores in Pennsylvania, New York, New Jersey, Maryland and Delaware. 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.
Boscov’s filed to reorganize under Chapter 11 on Aug. 4 in the U.S. Bankruptcy Court for the District of Delaware. As part of its filing, Boscov’s closed 10 of its 49 stores.