BANKRUPTCY

Appeals panel upholds bankruptcy court ruling in favor of Susan Bala

Susan BalaFARGO (KVRR) – A federal appeals court has upheld a federal bankruptcy judge’s ruling against Attorney General Wayne Stenehjem in his lengthy battle with the owner of a Fargo horse betting business. Iowa-based federal bankruptcy judge Thad Collins ruled against state claims in the complicated legal odyssey that began in 2004 against Susan Bala. Collins wrote “enough is enough”…

JCPenney Closing 4 stores in Minnesota, ND stores will remain open

PLANO, TX — J.C. Penney Company announced it will close 154 stores. Four of them are in Minnesota, the Willmar store and three in the Twin Cities. No North Dakota stores are on the list to close. The closings are part of a Chapter 11 bankruptcy protection filed earlier this month. This week JCPenney reopened 500 stores since government officials…

Boy Scouts of America Files for Bankruptcy Due to Sex-Abuse Lawsuits

The BSA said it is encouraging all victims to come forward to file a claim.

Barraged by hundreds of sex-abuse lawsuits, the Boy Scouts of America filed for bankruptcy protection Tuesday in hopes of working out a potentially mammoth victim compensation plan that will allow the hallowed, 110-year-old organization to carry on. The Chapter 11 filing in federal bankruptcy court in Wilmington, Delaware, sets in motion what could be one of the biggest, most complex…

New Ulm Diocese Reaches $34 Million Settlement Deal

The bankruptcy case involves 93 people who say they were sexually abused by priests and others

NEW ULM, Minn. — The Diocese of New Ulm in Minnesota has reached a $34 million settlement in its bankruptcy case with 93 people who say they were sexually abused by priests and others. Attorney Jeff Anderson, who represents many of the survivors, says it includes contribution of $8 million from the diocese and its parishes with the rest coming…

Shopko Files For Bankruptcy, Closing A Number of Stores In Our Region

The company will close nearly 100 of its more than 300 stores across the country this year

Shopko is closing stores nationwide including in Minnesota, North Dakota and South Dakota. The Wisconsin-based retail chain has filed for bankruptcy protection citing excessive debt and ongoing competitive pressure. The company will close nearly 100 of its more than 300 stores across the country this year. Here is a list of the Shopko stores that will close in our region….

Toys R Us To Close Fargo Store And All 800 Locations Across The U.S.

Closings Impact 33,000 Jobs Across The Country

FARGO, N.D. — Toys R Us’s management has told its employees that it will sell or close all of its 800 U.S. stores. That’s according to a toy industry analyst who spoke to several employees who were on the call Wednesday. Jim Silver, a toy industry expert, says Toys R Us’s CEO told employees the plan is to liquidate all…

Herberger’s Parent Company Files For Bankruptcy

North Dakota store locations include Fargo, Bismarck and Dickinson.

(York, PA) – The parent company of Herberger’s is filing for bankruptcy. Bon-Ton Stores said Monday that it is talking with potential investors and debtholders about a financial restructuring plan. Along with Herberger’s, Bon-Ton brands include Younkers, Boston Store, Carson’s and Elder-Beerman. There are 21 Herberger’s stores in Minnesota, including Moorhead, Fergus Falls, Bloomington, and St. Paul. North Dakota store…

Ice Cold Events Cancels Ice Palace for the St. Paul Winter Carnival

The director estimated a minimum of $5 million was needed

ST. PAUL — The group working to build an ice palace for the St. Paul Winter Carnival when the 2018 Super Bowl is nearby is canceling its plans. Ice Cold Events says it couldn’t guarantee enough financial support for the project. The director estimated a minimum of $5 million was needed. A massive $1 million ice palace was built the…

Attorney for Minnesota’s Denny Hecker Corrects Earlier Statements About His Release from Prison

The attorney said the phone call was not collect and she had no reason to doubt him

  MINNEAPOLIS, Minn. — It appears a former auto dealer from Minnesota is not a free man after all. Denny Hecker’s bankruptcy attorney said he called her and said he was in a halfway house, but the Federal Bureau of Prisons says the shamed auto dealer remains behind bars. The attorney said the phone call was not collect and she…

Minnesota Auto Mogul, Denny Hecker, Soon to be Released from Halfway House

Hecker had been in prison since October 2011 for bankruptcy fraud and wire fraud

MINNEAPOLIS — Disgraced former Twin Cities auto mogul Denny Hecker will soon be a free man. His lawyer confirmed Tuesday that Hecker has been released to a halfway house in Minneapolis and that he will be free to move on his own on Thursday. She said he “sounds upbeat and healthy and cheerful, really sounds invigorated.” Hecker had been in…