Boscov and Lakin Families to Buy Bankrupt Chain
November 17, 2008-- Home Textiles Today,
Boscov's has signed an agreement to sell the majority of its assets to a family group headed by Albert Boscov along with Edwin Lakin, the former top executive.
At the same time, the 39-unit department store retailer has ended a previous agreement to sell the company to Versa Capital Management Inc.
"I believe that this agreement maximizes the value of our business and the return to our creditors," said Lakin. "As we move toward completion of our restructuring process, Boscov's will be well-capitalized and have the resources to build a stronger and more competitive business."
The company said the Boscov/Lakin families believe they will soon wrap up a financing agreement. Assuming the bankruptcy court approves the deal, the company hopes to close the transaction by the end of the month.
A hearing set for Nov. 13 has been rescheduled for Nov. 21. Boscov's filed for Chapter 11 three months ago.
Albert Boscov and Edwin Lakin retired from active leadership of privately held Boscov's in 2006. Current chairman Kenneth Lakin, who is Lakin's son and Albert Boscov's nephew, has been ceo since 2001.