Springfield, N.J. - Sixth
Avenue has reportedly settled a $9.6 million suit brought last month by GE's inventory
The suit alleged that the
struggling A/V specialty chain defaulted on a $6.4 million loan payment in
February, prompting GE to suspend Sixth Avenue's credit line and seek a federal
court's OK to seize $5.5 million in remaining inventory collateral.
Court documents show that
the case was dismissed yesterday in a U.S. district court in Newark, N.J., following
a request by GE Capital Solutions. But claims brought in a Delaware district
court involving "different collateral" still stand, GE said. A third GE filing,
in New York, was deemed ineligible for arbitration in March.
Sixth Avenue is also
being sued in Pennsylvania by Philadelphia Media Network, publisher of the
Philadelphia Inquirer and Daily News, for $531,000 in unpaid advertising bills,
court documents show.
Terms of the settlement
were not disclosed, according to the Star-Ledger, a New Jersey newspaper, and
Sixth Avenue declined comment to TWICE.
The privately held chain
has closed 10 of its 19 stores since February.
Springfield, N.J. - Sixth Avenue has reportedly settled a $9.6 million suit brought last month by GE's inventory finance unit.