Family-owned department store Boscov's, which filed for bankruptcy in August, has announced it is selling the majority of its assets to a family group led by Albert Boscov and his brother-in-law, Edwin Lakin. Boscov is the son of founder Soloman Boscov and former CEO of the company.
"I believe that this agreement maximises the value of our business and the return to our creditors," said Ken Lakin, Edwin's son and current CEO of the company, in a statement. "It also provides certainty about the future direction of our company. As we move toward the completion of our restructuring process, Boscov's will be well-capitalised and have the resources to build a stronger and more competitive business."
Financing for the deal has not yet been completed but the Pennsylvania-based firm said it hoped the deal would close by the end of the month.
Boscov's, which was founded in 1911 and currently has 49-stores in the US, filed for bankruptcy after claiming that pressure from the weakened economy had hampered operations in recent years. A previous sale agreement between the department store chain and Versa Capital Management has been terminated.
Bankruptcy blues for Boscov's department stores
Who is you choice for Family Business Leader 2008? Click here to vote.