Mervyn’s Sues Private Equity Owners

Mervyn’s, the lower-cost retail chain, is accusing its private equity owners of essentially pilfering the company’s resources in a suit against the three private buyout shops and former parent Target. Mervyn’s alleges that the leveraged buyout of the chain from Target in 2004 was a fraudulent deal that stripped Mervyn’s of its valuable real estate assets and forced it into bankruptcy. The retailer said the three... [read full story]