MIAMI, FL- March 11, 2022- The liquidating trustee of Modell’s Sporting Goods Inc. launched a New Jersey bankruptcy court lawsuit accusing the great-grandson of the company’s founder of using his executive role and company resources to enrich his family-owned interests as the failing retailer descended into insolvency.
In a partially redacted adversary proceeding filed Thursday, March 10, in MSGI’s Chapter 11 case, MSGI Liquidation Trust alleged former company CEO Mitchell B. Modell rejected restructuring advice to shutter underperforming stores or find a buyer and instead forced the company to limp along amid falling profits to ensure it continued making store rent payments to real estate companies in which he owned a 50% stake.
Bast Amron is proud to be leading this litigation on behalf of the Liquidating Trustee.
Read more: https://www.law360.com/bankruptcy/articles/1472922/modell-s-ch-11-trustee-accuses-ex-ceo-of-self-dealing?nl_pk=1d89133c-32d0-4d2c-ae61-4966c0e11663&utm_source=newsletter&utm_medium=email&utm_campaign=bankruptcy
*Subscription may be required to read the article.