NEW YORK (Reuters) – The sale of bankrupt retailer Boscov’s Department Store LLC to a family group was delayed again at a court hearing on Tuesday, but is likely to be finalized on Friday.
A group led by family members Al Boscov and Edwin Lakin is seeking to rescue the Northeast department store chain from bankruptcy protection in a deal worth about $275 million to $300 million, an attorney for the company said on Tuesday.
Brad Erens, an attorney for Boscov’s told the U.S. Bankruptcy Court in Delaware the company and the family purchasers have prepared a reorganization plan and lined up financing for the deal.
Some last minute changes to the asset purchase agreement in consultation with the company’s creditors will be made before a scheduled hearing on Friday.
Judge Kevin Gross, who is overseeing the case, agreed to consider the company’s finalized sale motion again on Friday.
Gross also heard a limited objection on Tuesday to the sale from Versa Capital Management Inc, which previously bid to purchase the company.
Versa, a Philadelphia-based private equity firm, is not seeking to delay the sale, but argued it should be paid a $4 million break-up fee. Erens said Versa is not eligible for the fee because it could not line up its financing for the deal and was seeking to delay the deal closing.
Judge Gross said he would need to hear evidence on the break-up fee at a later date and encouraged Boscov’s and Versa to talk about their issues.
The Boscov’s sale has been delayed for over a month, while the company worked out the terms of the family’s bid, which was announced Nov. 4.
With sales of $1.25 billion in the year ended Feb. 2, Boscov’s had $538 million of assets and $479 million of liabilities as of May 3, according to court filings.
According to the family’s deal terms about $11 million in cash is expected to be paid at closing, with other portions of the deal value to be financed or through assumed liabilities.
Albert Boscov is the uncle of Boscov’s chief executive, Ken Lakin and was previously the chairman and chief executive of the chain. Edwin Lakin is Ken Lakin’s father.
(Reporting by Emily Chasan and Sarah Coffey; Editing by Andre Grenon)