1 hour, 33 minutes ago NEW YORK (Reuters) - Department-store chain Mervyn's Holdings LLC has sued its former private-equity owners, saying the firms stripped out real estate then leased it back to Mervyn's at higher rates, pushing it into bankruptcy, according to court documents.Mervyn's was purchased in 2004 by a group of investors including Cerberus Capital Management and Sun Capital Partners. The deal forced Mervyn's to transfer nearly all of its real estate assets to a newly formed entity, according to documents filed on September 2.
As a result, Mervyn's had to pay rents for locations that, before the deal, it had either owned or leased at rates that were often below market rates, the company said in papers filed at the bankruptcy court in Delaware.
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