NEW YORK: Daniel J. Edelman Inc. is being sued for at least $190,000 by a group of creditors representing former agency client Gregg Appliances.
The electronics retailer is a subsidiary of hhgregg, which declared bankruptcy in March.
The Official Committee of Unsecured Creditors of Gregg Appliances is seeking to avoid and recover any transfer of property that occurred during a 90-day period prior to the start of hhgregg’s bankruptcy proceedings. Under section 547 of the U.S. Code, any payments a debtor makes 90 days prior to bankruptcy have to be returned.
The agency is being sued for three transfers totaling $190,000: $90,000 with an invoice dated on November 8, 2016, $65,000 on November 15, 2016, and $35,000 on December 8, 2016. Edelman global CEO Richard Edelman was delivered his summons on November 27, court records show.
A DJE spokesperson said the company doesn’t comment on pending litigation. An Edelman contact listed on an hhgregg press release said the firm no longer works for the retailer.
Bankruptcy law firm Ask LLP has filed more than 500 similar suits since November 17 on behalf of the committee against vendors used by Gregg Appliances. The suit against Edelman was filed in U.S. Bankruptcy Court for the Southern District of Indiana. Ask LLP declined to comment.
The creditors committee was appointed by the Office of the U.S. Trustee for the Southern District of Indiana in March. Holding company Valor LLC acquired the hhgregg brand and intellectual property in August.