MADISON, WI (WTAQ) - The recent closing of the Madison-based American TV and Appliance chain has triggered lots of emotions.
It has also triggered a legal battle that was headed toward a hearing Monday in Dane County Circuit Court.
The company has filed for receivership protection from its creditors. Its former owner and TV ad celebrity, "Crazy TV Lenny" Mattioli, has asked Judge Rhonda Lanford to clarify who would buy six Wisconsin stores that recently closed in the Madison, Milwaukee, and Appleton areas.
He wants to know if American TV's current principles would unduly benefit from the sales, which the Journal Sentinel reports to be close to $20 million.
Also, another creditor -- the St. Louis firm of Gravois Bluff -- objects to a plan to destroy many of American's business records. The receiver, Michael Polsky, has responded that many records have no value to the receivership estate and therefore should be tossed aside.
Mattioli says they might be needed in case there are tax audits. Also, Polsky has said the offers to buy the Wisconsin store sites are fair and reasonable -- and they're in the best interests of both the current American TV owners and its creditors.
11 American stores in the Upper Midwest closed earlier this month. The company said they were victims of an unforgiving economy. Almost 1,000 employees lost their jobs.
(Story courtesy of Wheeler News Service)