Liquidators suing Caldor for $26 million

They bought inventory, claim price too high

August 03, 1999|By BLOOMBERG NEWS

NEW YORK -- Bankrupt Caldor Corp. is being sued for $26 million by a liquidators' group that claims it paid too much for inventory at the discount chain's 145 stores.

The liquidators -- Gordon Brothers Retail Partners LLC, Schottenstein Bernstein Capital Group LLC and the Ozer Group LLC -- agreed to pay $223.7 million for Caldor's remaining inventory in February, 85 percent of it up front. Norwalk, Conn.-based Caldor said in January that it was going out of business, shutting its discount stores and putting about 20,000 people out of work.

Caldor had agreed to reduce the final purchase price to the liquidators for any merchandise it had previously offered to shoppers at discounts of 50 percent or more, from Jan. 1 until the liquidators acquired the inventory, according to the lawsuit filed July 19 in U.S. Bankruptcy Court in Manhattan. Caldor refused to refund the liquidators $24 million for such merchandise, and about $2 million in additional expenses, the breach-of-contract suit said.

Caldor calculated the final purchase price for the inventory at $178.2 million, while the liquidators said it should have been $154.2 million, the suit said.

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