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Wednesday, November 19, 2008

Boscov's is expected to open up before Black Friday 2008

Boscov's, one of the last family owned department store chains in USA, is hoping to open up its 39 stores before “Black Friday.” The company filed for Chapter 11 bankruptcy protection in August 2008. Out of its total 49 stores, it will have to sell 10 stores. On November 18, 2008, a court hearing was held which cleared major obstacles for the buyout. The regional department store chains which were supposed to be sold to Versa - Capital Management, Inc., a Philadelphia-based private equity firm, for $11 million, will now be bought by Albert R. Boscov, son of the Boscov’s founder, Solomon Boscov, and his brother-in-law, Edwin Lakin. They collected around $300 million from their friends and families. A final sale order will be issued by the court on November 21, 2008. After this, everything will be finalized by November 26, 2008 Philly.com reports:

"That's enough to convince the court that we're for real," the retail hound from Reading said with a smile. His spunk and legendary charm gushed as he fielded questions from a knot of reporters during a recess from the sale hearing - his first public remarks about a deal sure to leave the most savvy dealmakers in awe.

If Judge Gross signs off on the asset-purchase agreement at a hearing Friday, Boscov's Department Store L.L.C. and its 8,000 mostly regional employees will stay in business.

The ten stores which were bought by the executives in a move to expand Boscov’s business proved to be a burden for the company. In his testimony, Boscov’s financial adviser, J. Scott Victor, said that the Boscov’s has the capacity to bring in $12.7 million revenue in its first year compared to its 2007 loss. The main strength of the departmental store chains is its army of loyal customers. Many of the services offered by Boscov’s are not offered by stores anymore. Albert R. Boscov is hopeful that they are going to do great business in the coming “Black Friday.”


Related articles:

AP

Philly.com

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