Boscov's Signs Asset Purchase Agreement for Sale of Company to Family Group Led by Albert Boscov and Edwin Lakin

2008-11-08 10:32:04 -

- Boscov's Department Store LLC (Boscov's), announced today that it has signed an Asset Purchase Agreement (APA) for the sale of substantially all of its assets to a family group led by Albert Boscov and Edwin Lakin. Boscov's also announced that the Company has formally terminated the previously announced agreement with Versa Capital Management, Inc.

"On behalf of the Company, I am very pleased that we have been able to sign an APA that has the support of the Official Creditors Committee," said Ken Lakin, Chairman and CEO. "I believe that this agreement maximizes the value of our business and the return to our creditors. 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-capitalized and have the resources to build a stronger and more competitive business."

The Boscov/Lakin families have had positive discussions regarding funding for the transaction and believe that they will soon be able to conclude a formal financing agreement. The Company hopes to receive Bankruptcy Court approval and to close the transaction prior to the end of November. A hearing on the sale is scheduled for November 13 before Judge Kevin Gross.

Boscov's filed to reorganize under Chapter 11 on August 4, 2008 in the United States Bankruptcy Court for the District of Delaware.

About Boscov's

Boscov's, with 39 stores in Pennsylvania, New York, New Jersey, Maryland, and Delaware, has been providing customers with a wide selection of merchandise, competitive prices and superior service for nearly a century. The Company is committed to the communities it serves and has a long and distinguished history of civic and charitable activities. Boscov's serves consumers across the country with a robust online shopping capability as well. For more information or to shop online please visit www.boscovs.com.

MWW Group
Rich Tauberman / Susan Kenney
202-585-2282 / 201-964-2392
rtauberman@mww.com / skenney@mww.com