The founding family behind Boscov’s Department Store is to buy back the company in a cut price deal after it was approved by the US Bankruptcy Court.
A family group, led by second-generation family member Albert Boscov and brother-in-law Ed Lakin, hope to close the reported $305 million transaction shortly.
"Today marks an important milestone in Boscov’s restructuring and more importantly for the future of our company," said Ed’s son Ken Lakin, the current chairman and CEO.
"Boscov’s ability to reach this point in our restructuring, in the face of an economic recession and one of the most challenging periods the retail sector has ever encountered, is a testament to the hard work and commitment of our co-workers, the loyalty and encouragement of our customers and the support and belief in our company among the vendor community," he added.
Boscov’s filed for Chapter 11 bankruptcy in August this year and secured an agreement with courts and creditors to sell off company assets including 10 stores.
The company had agreed to sell to Philadelphia-based private equity form Versa Capital Management. However, Albert Boscov, who retired as chairman in 2006, led the family buyback.
Founded by Solomon Boscov in 1911, Boscov’s employs 8,000 people, the majority in Pennsylvania.
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