Versa Capital Management, Inc., a Philadelphia-based private equity investment firm that recently acquired Bob’s Stores, has reached an agreement to acquire bankrupt Boscov’s Department Store. Under bankruptcy procedures, Versa will serve as the “stalking horse” bid that sets a floor for other offers. The auction process will be overseen by the U.S. Bankruptcy Court in Delaware.
Boscov’s, which filed to reorganize under Chapter 11 on August 4, said it was in the process of negotiating a definitive agreement with Versa and any deal is subject to financing. A higher offer also could emerge in the auction process, Boscov’s said.