Two retired Boscov's executives are preparing to buy the assets of the regional department store chain that filed for bankruptcy protection in August.
Albert Boscov and Edwin Lakin, the son and son-in-law of company founder Solomon Boscov, will buy the 39 remaining stores, including locations at Beaver Valley Mall in Monaca and Clearview Mall in Butler. Boscov's announced the deal Tuesday but didn't disclose terms.
The deal "maximizes the value of our business and the return to our creditors," said Ken Lakin, Boscov's CEO and Edwin Lakin's son.
As its restructuring process is completed, he said, "Boscov's will be well-capitalized and have the resources to build a stronger and more competitive business."
Reading-based Boscov's said it terminated an earlier agreement to sell its assets to Versa Capital Management Inc., a Philadelphia-based private equity firm.
Financing for the deal has yet to be completed. Boscov's said it aims to close the transaction by the end of November. The deal is subject to the approval of a Delaware bankruptcy judge.
The chain Solomon Boscov founded in 1911 expanded aggressively in 2006 by acquiring former Kaufmann's at Monroeville Mall and South Hills Village, along with eight other stores from Macy's parent Federated Department Stores Inc.
A weak retail climate and tighter credit pushed Boscov's into Chapter 11 bankruptcy, listing $538 million in assets and $479 million in debts as of May 3. The two Pittsburgh area stores and five other former Federated sites that converted to Boscov's were among the 10 to close this fall as part of the restructuring.
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