The former operator of plus-size fashion chain Ashley Stewart Inc. filed for Chapter 11 bankruptcy in New Jersey in a move to freeze a “multi-state fraudulent transfer” to buyer G Ashley Inc.
The company said that while it no longer operates the stores, the November sale of its assets to “disguised insider entity” G Ashley was never fully completed and should be voided because the transaction was unlawful. The statements came in a Wednesday declaration by board director Ram Ajjarapu in the US Bankruptcy Court for the District of New Jersey.
Ashley Stewart is working on a lawsuit to unwind ...