Mandelbaum Barrett PC’s bankruptcy team successfully represented the authorized board of Ashley Stewart, Inc., the plus-size retailer, in a high-profile case where the court dismissed an unauthorized Chapter 11 filing. The case arose after former board members attempted to file for bankruptcy without proper authority, in violation of a NJ Superior Court Consent Order. Several Mandelbaum practice groups had to act quickly to minimize disruption caused by the bankruptcy. They effectively brought the complex corporate governance and lengthy state court litigation proceedings to the Bankruptcy Court’s attention and had the case dismissed within a week of the unauthorized filing. This ruling reinforces a critical principle: a company cannot file for bankruptcy without proper corporate authority, affirming important precedent for future restructuring matters.
Congratulations to our Bankruptcy team — Vincent J. Roldan, Jeffrey M. Rosenthal, and Katie F. Warren — and our Corporate Governance and Litigation colleagues Andrew Gimigliano and Michael Giordano for their outstanding work in achieving this result. Learn more about our Bankruptcy practice here.
These stories are successful case results from our attorneys. Please note that results may vary depending on your particular facts and legal circumstances.