READING, Pa.–Bankrupt Boscov’s Department Stores signed a letter-of-intent to be acquired by Versa, a private-equity firm.
Versa, formerly known as Chrysalis Capital Partners, is the stalking horse—or lead bidder—for the $1 billion retailer.
Other companies can bid on the retailer, which filed for Chapter 11 on Aug. 4. On Oct. 13, the Delaware bankruptcy court will hold an auction to determine the winning bid.
Versa said in a press release that should it win the bid for the chain, it “intends to operate the business post-closing.”
Boscov’s, a 39-unit retailer, bills itself as the largest family-owned department store. Boscov’s officials were not available at press time.
“With the full support of our committee of creditors, we are very pleased to have entered into a letter-of-intent with Versa, which will result in Boscov’s being well capitalized and allow us to move quickly toward completion of our restructuring,” Ken Lakin, Boscov’s chairman and chief executive officer, said in the statement.
Considered an old-school department store, Boscov’s still carries merchandise its retail brethren abdicated years ago, such as major appliances and toys.