Versa Buying Bankrupt Boscov’s

Versa Capital Management has agreed to acquire substantially all the assets of retailer Boscovs Department Store LLC, which filed for Chapter 11 bankruptcy protection on August 4.



Boscov’s Department Store LLC (Boscov’s), announced today that it has signed a Letter of Intent (LOI) for the sale of substantially all of its assets to Versa Capital Management, Inc., a Philadelphia-based private equity investment firm. Versa intends to operate the Boscov’s business post-closing.

“With the full support of our Committee of Creditors, we are very pleased to have entered into an LOI with Versa, which will result in Boscov’s being well capitalized and allow us to move quickly toward completion of our restructuring,” said Ken Lakin, Chairman and CEO. “Versa appreciates Boscov’s commitment to its customers, co-workers and the communities we serve and is well positioned to provide the resources to ensure that we build upon our nearly one-hundred year tradition of providing a friendly, local place to shop with brand names, great values and service.”


“Boscov’s is a true American retailing institution and its core store base provides for strong earnings potential going forward,” said Greg Segall, Managing Partner of Versa Capital Management. “They have dedicated employees, loyal customers and significant involvement in the community, and we look forward to working with management to create a stronger, more competitive company.”

Boscov’s has filed papers with the Bankruptcy Court regarding the LOI, designating Versa as the ‘Stalking Horse’ and setting out a proposed outline and schedule for a Court-supervised auction process in accordance with the rules and procedures of the Federal Bankruptcy Code. Boscov’s and Versa are in the process of negotiating definitive documentation including an Asset Purchase Agreement (APA). The Versa LOI and any APA between the parties is subject to certain conditions including financing and to better and higher offers in the results of the auction process. Boscov’s complete filing can be viewed at

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

About Versa Capital Management

Versa Capital Management, Inc. (formerly known as Chrysalis Capital Partners, Inc.), is a Philadelphia based private equity investment firm with over $900 million of committed capital focused on control investments in special situations involving middle market companies in a wide variety of industries throughout the United States. More information can be found at