Group Adversary Complaint Filings in the Mynd Spa & Salon Bankruptcy Case; $2.5 Million Claim Against Alleged Insiders
March 18, 2022, New York – Albert Togut, the Chapter 7 Trustee of the estate of Debtors Mynd Spa & Salon, Inc., et al., filed adversary actions against fifty-six (56) defendants seeking to recover transfers made to the Defendants as alleged preference and fraudulent transfers, among other claims.
In one of these adversary cases, Togut filed a complaint against North Castle Partners, LLC et al. (AP. No. 22-01072), seeking to recover $2.5 Million transfers as alleged “fraudulent conveyances” from the Defendants. The Plaintiff also seeks “to redress the harm to the Debtors, their creditors, and their estates caused” by certain insiders “when they breached fiduciary duties of care and loyalty by elevating their individual financial interests over the interests of the Debtors and their true creditors and causing the Debtors to make the above-described payments.”
As gathered from the bankruptcy filings, the Debtors owned and operated luxury salons, spas, and business offices throughout the United States. On March 19, 2020, the Debtors each filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code in the Bankruptcy Court for the Southern District of New York. Bankruptcy Judge Shelley C. Chapman presides over the Debtors’ bankruptcy cases and these adversary actions.