In other news related to the Joes Sports bankruptcy case, Worldwide Distributors, the buying group that has counted G.I. Joes as a Class A member since 1978, has filed suit against Wells Fargo Retail Finance and Crystal Capital Fund Management as agents and lenders in the case.
WDI suggests that G.I. Joes had a signed security agreement with the buying group that granted to Worldwide a security interest in all inventory and proceeds and all equipment and proceeds to secure all Joes direct and indirect indebtedness to Worldwide.
Worldwide claims in its suit that on February 19, 2009, Joes informed the buying group that unpaid Class A invoices totaled roughly $3.5 million. WDI said it was aware of invoices in said class totaling over $7.0 million during the 90 days preceding the February 19 bankruptcy protection petition date. The group said that on March 17, the chief restructuring officer overseeing Joes verbally told WDI president Mark Williams that the then-estimated total amount of unpaid invoices was $6.8 million to $7.0 million.
WDI has also determined that the sum of all Class B invoices the buying group had paid and was owed reimbursement by Joes, as well as unpaid monthly member dues, was approximately $1.7 million. The total claim by Worldwide Distributors is “at least” $8.5 million.
