Case Study

BI-LO and Bruno’s Supermarkets

CLIENT: Counsel to Lone Star, BI-LO and affiliated entities

Gordian was engaged as consulting and expert witness in connection with the defense of claims brought by the Bruno’s liquidation trustee against Lone Star, BI-LO and affiliated entities.

Business Profiles

Situation

In 2005, Lone Star acquired BI-LO and Bruno’s Supermarkets from Ahold.  After two years, Bruno’s was then spun off from BI-LO in 2007, creating two independent companies.  Bruno’s filed for bankruptcy in February 2009 and confirmed a Plan of Liquidation, effectively converting the estate into a liquidation trust to pursue litigation and other claims.  BI-LO filed for bankruptcy soon thereafter and emerged as a standalone entity pursuant to a plan of reorganization.

Engagement

Gordian was engaged as consulting and expert witness in connection with the defense of claims brought by the Bruno’s liquidation trustee against Lone Star, BI-LO and affiliated entities.  Gordian’s work involved detailed analysis with respect to Bruno’s business condition, solvency and adequate capitalization, among other things.

Outcome

The case settled before trial.