Springfield, N.J. - Sixth Avenue has reportedly settled a $9.6 million suit brought last month by GE's inventory finance unit.
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.