Home New Cases Bluefly Trustee Sues RueLaLa, Inc. for Return of $2M as “Preference Transfers”

Bluefly Trustee Sues RueLaLa, Inc. for Return of $2M as “Preference Transfers”


 January 29, 2021, Delaware –Debtor Bluefly Acquisition, LLC operated a well-known e-commerce fashion website selling clothing, accessories, and jewelry. Defendant RueLaLa Inc. operates as an online invitation-only destination for discovering private sale boutiques. Defendant Retail Convergence.com, LP provides e-commerce products and services. 

The Debtor allegedly entered into certain agreements for the purchase of goods and/or services, with the Defendants pursuant to which the Defendants were obligated to provide and deliver certain services to the Debtor. The Debtor and the Defendants conducted business with each other during the 90 days before the Debtor’s bankruptcy. 

The Trustee has recently initiated an adversary proceeding, alleging that the Debtor transferred $2,392,768.79 to the Defendants during the preference period and as such the alleged transfers are entitled to be avoided as “preferential transfers” under Sec. 547 of the bankruptcy code.

The case is In re: Bluefly Acquisition, LLC, in the United States Bankruptcy Court for the District of  Delaware under case no. 19-10207(CSS). Honorable Judge Christopher S. Sontchi is presiding over the Debtor’s bankruptcy cases.