Versa proposed paying $11 million in cash and assuming Boscov's debt, according to a filing with the U.S. Bankruptcy Court in Delaware. The firm intends to keep stores open at the almost century-old chain. Buyers in some bankruptcy auctions, such as that of home-goods retailer the Bombay Co. Inc., have shut all the stores and sold off all the assets without trying to salvage the businesses.
The emergence of Versa as the lead bidder means Boscov's is less likely to become another casualty of the consumer-spending slowdown that led to the liquidation of Sharper Image Corp. and Wilsons the Leather Experts Inc.
Versa spokeswoman Kristy DelMuto declined to comment.
The lead bidder on a bankrupt company's assets, also known as the "stalking horse," is chosen by the company to make the first offer so that a minimum price is set.
The Boscov family also has explored a bid to regain ownership, according to a person with knowledge of the family's plans.
Founded in 1911, Boscov's came under pressure as the collapse of the housing market and increased food and energy costs prompted consumers to curb spending. Its stores are concentrated in economically struggling communities in Pennsylvania and five other states.
Boscov's followed regional chains Mervyn's L.L.C., Goody's Family Clothing Inc., and a dozen other retailers into bankruptcy this year. At the time of the filing, Boscov's, which had 9,500 employees, said it would immediately close 10 of its 49 locations.
Versa was one of the buyers of Bob's Stores Corp., the money-losing chain sold by the TJX Cos. Inc. last month.
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