Retail Roundup: Boscov's in Hot Water, Buyer's Remorse Hits Retailers Hard, and More

Spurned firm seeks $4 million from Boscov's --- Boscov's department stores fell into trouble Nov. 12 when Versa Capital Management, a Philadelphia-based buyout firm who offered to save the chain from bankruptcy two months ago, told a federal judge it has a right to be compensated for the cash "lifeline" that allowed the stores to stay open. Versa Capital Management, the stalking-horse bidder, was rejected by Boscov's after the company's former leaders, Albert Boscov and Edwin Lakin, scrambled to put together a last-minute counteroffer. Versa now seeks a $4 million breakup fee, for which Boscov's claims Versa isn't owed. [Source: Delaware Online]

Buyer's remorse is making consumers return their purchases in record numbers -- Prodding casual window shoppers into actually making a purchase is hard enough during an economic downturn, and now retailers have another issue to add to their full plates:Those who are spending money are increasingly changing their minds and returning their purchases. Consumers are expected to return $219 billion worth of merchandise this year, a new record, according to the National Retail Federation. The figure accounts for 8.7 percent of total sales, compared with 7.3 percent in 2007. [Source: The New York Times]

Charlotte Russe receives takeover bid -- A Charlotte Russe shareholder placed an offer worth as much as $198.6 million to take over the floundering women's retailer, which has just been outfitted with a new executive management team. In a joint statement, KarpReilly Capital Partners, which owns a 5.4 stake in Charlotte Russe, and its partner H.I.G. Capital said they offered between $9 and $9.50 per share for the chain's 20.9 million shares outstanding. "Given our deep experience in retailing, and with Charlotte Russe in particular, we believe that we and H.I.G. can offer Charlotte Russe stockholders superior value to what they can realistically expect to receive remaining as stockholders of the current public company," said Allan Karp, of KarpReilly. The retailer's chairwoman, Jennifer Salopek, said the board is evaluating the buyout proposal and plans to do "what is in the best interest of the shareholders." [Source: San Diego Union-Tribune]

Sean "Diddy" Combs looking to bank off Obama's success -- Hip-hop-artist-turned-marketing-mogul Sean "Diddy" Combs has made a fortune off his own polished presentation and famous swagger, and he's hoping his next concept will resonate with those who appreciate Barack Obama's style, as well. Combs said the campaign for his new $57 fragrance called "I am King" will embody black success. "When you see Barack Obama, you see a strong, elegant black man, and when people see my ad, it's almost like that's the trend," he said. [Source: WSJ]