Family Group Makes Offer for Boscov’s

Boscov’s Department Store LLC (Reading, Pa.) has signed an asset purchase agreement for the sale of substantially all of its assets to a family group led by former chairman Albert Boscov and former president Edwin Lakin, both of whom retired in 2006.

According to Women’s Wear Daily, the bankrupt regional department store operator has formally terminated the agreement it signed in September with private equity firm Versa Capital Management Inc. (Philadelphia). Versa had offered $11 million in cash for the 39-store, five-state chain.

Including the assumption of debt, the Versa deal had a total value of about $288 million. The Boscov-Lakin offer would have a minimum value of $292 million because of the $4 million breakup fee to which the Philadelphia-based Versa is entitled.

“On behalf of the company, I am very pleased that we have been able to sign an [asset purchase agreement] that has the support of the official creditors committee,” said Ken Lakin, Boscov’s chairman and ceo, the son of Edwin Lakin and nephew of Albert Boscov.