The trustee in charge of liquidating bankrupt Modell’s Sporting Goods filed suit in NJ federal bankruptcy court against former CEO Mitch Modell and former CFO Eric Spiel, along with holding company Henry Modell & Co., and a number of affiliated real estate entities. The suit, which is heavily redacted, accuses the former officers of breaching their fiduciary duty to the debtor and creditors, and claims that Modell’s paid unlawful dividends and rents while the debtor was insolvent. The trustee argues that Modell’s was effectively insolvent since at least 2017, although it continued to operate until filing for Ch. 11 protection ... Log in to view full article.