Group to Buy Stake in Family Bargain

Three Cities Research Funds Inc., a New York-based venture capital and leveraged-buyout investment group, will acquire 48% to 52% of Family Bargain Corp. of San Diego for about $32 million. Family Bargain operates an off-price apparel retail chain with 150 stores in California, Arizona, New Mexico, Oregon, Nevada, Texas and Washington. As part of the agreement, Chairman Benson Selzer, Chief Executive John Selzer and President Joseph Eiger will resign and have no further involvement with Family Bargain, the company said. William Mowbray, chief operating officer and chief executive of two subsidiaries, will become president and chief executive of Family Bargain. Family Bargain said it lost $80,000, or 21 cents a share, for the third quarter. That contrasts with net income of $1.74 million, or 24 cents a share, a year earlier. The deal is expected to be completed by Jan. 14. Family Bargain shares rose 9 cents to close at $2.34 in Nasdaq trading.