Aeropostale CEO Julian Geiger claims the private equity firm backing the distressed teen retailer wanted it to crumble
The retailer has asked ( Judge) Lane to disqualify New York-based private equity firm Sycamore Partners from using its $150 million debt to bid at the auction. A trial on Aeropostale’s complaint began Aug. 15 in the SDNY Bankruptcy Court.
|Julian Geiger former CEO of Aeropostale on witness stand questioned by Sycamore partners attorney Robert Ellis|
|Richard Slack of Weil Gotshal questioning Julian Geiger on the stand. Weil represents Aeropostale in the bankruptcy proceeding.|
Aeropostale has said since the outset of its bankruptcy in May that Sycamore used a supplier it controls, MGF Sourcing Holdings Ltd., to drive the company into Chapter 11. On July 22, the retailer accused Sycamore of pursuing a “loan to own” strategy and said the firm and its managing partner Stefan Kaluzny traded on inside information about the company.