Bankruptcy trustee alleges Giordano’s ex-owners looted money form the business

One of Chicago’s most famous pizza chains had to seek out a bankruptcy attorney to help them with their liquidity problems in February 2011. And now the bankruptcy trustee is accusing the ex-owners of looting money from the business, according to the Chicago Tribune.

According to the trustee overseeing the bankruptcy Giordano’s owners, John and Eva Apostolou, paid themselves over-inflated salaries and used restaurant funds to pay personal bills. From 2010 until the bankruptcy filing, the Apostolou’s took more than $2 million from the chain’s cash dividends. The also raised their annual combined salaries from $1.1 million to $1.6 million.

The trustee stated that the outflows contributed to the chain’s “liquidity” crisis as reported by the Tribune. This looting was occurred after the business became financially insolvent. This also leaves very little money to satisfy creditors. Numerous businesses face overburdening debt for legitimate reasons and a bankruptcy lawyer can offer solutions for alleviating this debt.

The trustee has determined that a minimum of $4,443,664 was fraudulently transferred from the restaurants funds. The Apostolous’ used the money to pay for their downtown Chicago apartment, utility bills for their Florida home and personal auto repair.

Most bankruptcies don’t involve any fraudulent behavior; some businesses simply face financial downturns. A bankruptcy attorney can offer solutions for the troubled business so they can return to financial solvency. Bankruptcy attorneys know which type of bankruptcy structure best meets the needs of the business.