Calendar Companies May Be Headed to Court
by October 28, 2013 12:00 am 113 views
Game on Advertising LLC and its sister company, Game on Promotions LLC, are being sued for breach of contract and unjust enrichment in the amount of $5.2 million by 5 Star Sports Calendar LLC, a company run by former Tyson Foods Inc. CEO Wayne Britt.
The suit in Washington County Circuit Court claims Game On of Fayetteville misrepresented the value of its accounts receivable when it entered into purchase negotiations with 5 Star back in 2009.
As 5 Star, also a Fayetteville-based company, started trying to collect on the outstanding balances, it learned that many of Game On’s accounts “were subject to setoffs and counterclaims, were not valid or current, and could not be collected in accordance with their represented terms and recorded amounts,” according to the suit.
In April, Game On owner Mark McQueen and wife Janel L. McQueen filed jointly for a Chapter 7 in U.S. Bankruptcy Court for the Western District of Arkansas, citing assets of $1.1 million and liabilities of $1.3 million. The debts were discharged in July, but since the bankruptcy was personal, Game On’s assets and liabilities were not affected.
Listed in McQueen’s bankruptcy schedule of personal property is an asset valued at $900,000 — the value, McQueen says, of what was promised to him under the terms of a proposed sale of Game On to Little Rock investment titan The Stephens Group.
A source told Whispers that McQueen plans on prying that asset from Stephens’ hands and using the proceeds to pay any unsecured creditors.
Stay tuned.