EXCLUSIVE – In an unprecedented move, lawyers representing a group of 19 Bangladesh apparel manufacturers have written to Sears Holdings owner, Transformco, threatening legal action if the company refuses to settle US$40m worth of outstanding debt.
In communication shared with Apparel Insider, the lawyers demand the immediate payment of US$40,291,825.46 under its clients’ contractual rights against Transformco, a privately held company held run by Eddie Lampert. The lawyers present a huge dossier of evidence to support their claims, the most striking element of which is that Transformco willingly misrepresented its financial position to induce suppliers to extend it credit.
The lawyers also state that more than US$21m of its clients’ products have already been shipped and are being stored by Transformco’s carriers in US ports. States the letter: “The Suppliers have since been informed by Transformco’s shippers that the buyer has ‘abandoned’ the cargo. The carriers are now threatening to sell or destroy the goods.”
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