The board of directors of Ashley Stewart Inc., the former operator of the plus-size fashion chain, urged a court to dismiss the company’s bankruptcy, alleging it was filed by two former board members who lacked the requisite authority.
The sole director of the company, Adam Zalev, didn’t authorize the bankruptcy petition, the board said in a Dec. 19 motion to dismiss in the US Bankruptcy Court for the District of New Jersey.
It argued that the case was initiated by an “alleged reconstituted board,” in which former board members Ram Ajjarapu and Julia Klyashtorny are trying “to wrestle control of ...
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