Target, investors agree to pay $166 million Mervyn's settlement - Bring Me The News

Target, investors agree to pay $166 million Mervyn's settlement

A bankruptcy judge has signed off on a settlement under which the creditors of the now-bankrupt Mervyn's, the former Target Corp. clothing subsidiary, will collect a $166 million settlement from Target, private equity firm Cereberus Capital Management and about 40 other investors, the Star Tribune reports.
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A bankruptcy judge has signed off on a settlement under which the creditors of the now-bankrupt Mervyn's, the former Target Corp. clothing subsidiary, will collect a $166 million settlement from Target, private equity firm Cereberus Capital Management and about 40 other investors, the Star Tribune reports.

Minneapolis-based Target sold Mervyn's in 2004 to an investment consortium. The California-based clothing retailer filed for bankruptcy four years later.

Unpaid creditors claim the investment firms stripped usable real-estate assets and forced Mervyn's into bankruptcy, U.S. News reports.

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