29Mar2010

Former Owner of Bruno’s Illegally Stripped $290 Million in Assets: Lawsuit

Knowing that Bruno’s Supermarkets was going under, Lone Star Funds, its owner, allegedly pulled out as much as $290 million in cash and assets, according to a lawsuit filed in federal court in Dallas. 

Details of the November action are just coming out now, but supposedly the assets should have been used to pay off debts. Lone Star says it did nothing wrong, and that its various transactions were meant to help the company survive.

The suit was filed on behalf of creditors, naming Bruno’s and 25 executives who served as officers and directors involved in the deal. C&S Wholesale Grocers, which bought Bruno’s out of bankruptcy and still operates some of the Bruno’s and Food World stores, is not named in the action.

There are a couple dozen stories about this on the web today: Just Google Bruno’s +$290 million +Lawsuit.