By  on September 5, 2008

Mervyns has filed suit against its former ownership group, alleging the private equity firms’ business dealings forced the department store chain into bankruptcy in July.

The suit filed in federal bankruptcy court in Wilmington, Del., on Sept. 2 charges that the ownership consortium, which included Sun Capital Partners Inc. and Cerberus Partners, stripped Mervyns of valuable real estate assets, such as owned stores and below-market leases, when it took over the company for about $1.2 billion in a leveraged buyout from Target Corp. in 2004.

To Read the Full Article
SUBSCRIBE NOW

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus