Court Rules that Mervyns Buyer Group Pay $166MM in Settlement
The Wall Street Journal reported that U.S. Bankruptcy Judge Kevin Gross of the U.S. Bankruptcy Court in the District of Delaware has ruled that a buyer group led by Sun Capital and Cerberus must pay $166 million in a settlement that their buyout of defunct retailer Mervyns led to its demise.
The buyer group purchased Mervyns in 2004 from Target for $1.2 billion. The settlement will allow unsecured creditors of the company to receive payouts four years after the stores were liquidated.
The Sun-Cerberus group acquired Mervyns in two actual purchases, which consisted of the retail operations and its real estate properties. The creditors say that the purchasers funded the buy with the real estate assets and let the company insolvent.
To read the Wall Street Journal article in its entirety, click here.
Previously on abfjournal.com: