Last Updated Dec 9, 2009 1:19 PM EST
When the March 10, 2009, buy occurred, the big unanswered question was, How much did NAM pay? NAM's suit gives this breakdown:
- Total paid: $29,500,000.
- Seller Contracts taken on by NAM: $13,000,000.
- FGI executives received the following for those contracts: Yves Anidjar, $1,200,000; Mike Devlin, $1,200,000; Richard Rebh, $4,800,000; George Rebh, $4,800,000,
- Total preliminary allocation: $12,000,000.
... it knew that some of the Seller Contracts could not be assigned to NAM and, in the case of certain other Seller Contracts and/or stores associated with such contracts, those contracts or stores simply did not exist, but Floorgraphics did not reveal those facts to NAM.The suit has a certain chutzpah to it. A source tells BNET that FGI had sales of less than $1 million. Many outside observers believed that at the time of the deal, FGI existed mostly to resolve its litigation against NAM, not as a functioning business. It's hard to believe NAM thought it was buying a genuine business and not settling a lawsuit, which is essentially what NAM is arguing in its suit.
The source notes that NAM's total legal costs in the deal are not mentioned in the complaint. So we can assume that the ultimate bill was a lot more than $29.5 million.
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