Private equity firm Wellspring Capital Management allegedly mismanaged and siphoned the value from former firearm distributor United Sporting Companies, leading to its bankruptcy last year, a trustee liquidating the company’s estate says.
The New York investment firm and a group of its managing partners allegedly engaged in “self-dealing and gross mismanagement” related to their stewardship of the company, which Wellspring acquired in 2008, according to a complaint filed in the U.S. Bankruptcy Court for the District of Delaware.
The Chapter 11 liquidation trust for creditors of United Sporting’s parent company SportCo Holdings Inc. says Wellspring and a group of SportCo ...