Boscov’s Sale to Family-Led Group Closes

NEW YORK, Dec 4 (Reuters) – A family-led group on Thursday closed its deal to buy bankrupt U.S. department store chain Boscov’s Department Store LLC, a spokesman for the company said.

The company, which filed for bankruptcy protection in August, won court approval for the $300 million deal last month.

The group, led by Albert Boscov and Edwin Lakin, is putting up around $50 million in new equity and has lined up additional lenders who will take a junior position to banks that are providing $210 million in senior loans to the company, according to court papers.

There were some delays in the closing as the company worked to line up all of its financing.

Founded in 1911, Boscov’s is a family-owned U.S. department store chain with 39 locations on the East Coast. The company, which has been closing stores as part of its restructuring plan, had struggled to find new equity investors, and was hurt amid lower consumer spending and tightened terms by vendors in the recent economic downturn.

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; editing by Carol Bishopric)