The proprietor of United Furnishings Industries has been famous for his philanthropic efforts in previous years — whilst he has landed in authorized scraps and contentious chapter proceedings, in keeping with information reviews and court docket paperwork.
David Belford — who made headlines final week for abruptly yanking jobs and medical insurance for his 2,700 staff — based a charity for sick kids and donated $10 million to ascertain a spinal wire damage analysis middle at Ohio State College’s Wexner Medical Heart — a Columbus, Ohio facility named after Victoria’s Secret’s billionaire founder, Les Wexner.
In 2008, he established the Belford Household Charitable Fund, which helps kids’s organizations together with Flying Horse Farms, a camp for sick kids that he and his spouse, Jenni, co-founded. He's listed because the founder and proprietor of the camp alongside together with his funding agency Stage Capital.
On the similar time, Belford has been named in lawsuits and chapter proceedings alleging that he’s been concerned in “fraudulent transfers” of monies and “brazen violations” of non-compete agreements, in keeping with court docket paperwork.
Final 12 months, American Freight — a reduction furnishings firm that his brother Steve based 28 years in the past and later bought – sued Belford, alleging that he stole commerce secrets and techniques and violated non-compete agreements after being purchased out by its new proprietor for $15 million. His funding agency, Stage Capital and an organization he owned – Surplus Freight – had been additionally named within the criticism, as was American Freight’s former CEO, Asaph Rink.
American Freight alleged that Belford and Rink “poached” its staff and commenced systematically opening Surplus Freight furnishings shops – which had beforehand been situated in Canada – within the US and in key American Freight markets.
“Surplus Freight and its shops are practically carbon copies of American Freight’s shops,” in keeping with the criticism.
The litigation was ultimately settled.
Belford was additionally concerned in a liquidation chapter case in 2005 of a reduction furnishings and bedding chain referred to as Nationwide Warehouse and Storage, LLC. The trustee for Nationwide Warehouse was searching for to get well $35 million from Belford in an “adversary continuing,” alleging that Belford obtained the $35 million in “fraudulent transfers,” in keeping with court docket paperwork.
The trustee for Nationwide Warehouse additionally introduced a separate adversary continuing in opposition to United Furnishings Industries.
The case was additionally settled in a “compromise settlement,” in keeping with court docket paperwork and it’s not clear whether or not Belford needed to pay something.
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