Mervyn's Cops Flak Over Employee Bonus Plans

Law360, New York (October 30, 2008, 12:00 AM EDT) -- Bankrupt department store chain Mervyn's LLC, which recently announced plans to close down its remaining stores and liquidate its assets, has come under fire for its executive incentive and employee retention plans, which creditors claim will cost the estate millions of dollars.

Mervyn's unsecured creditors and the U.S. trustee overseeing the retail chain's Chapter 11 case have urged the Delaware bankruptcy court to deny the debtors' request to implement the plans, saying the company demonstrated no justification for the proposed payments.

The company filed a motion...
To view the full article, register now.