Ashley Stewart Bankruptcy Nixed as Judge Finds Lack of Authority

A New Jersey judge dismissed the bankruptcy of the former operator of plus-size fashion chain Ashley Stewart Inc. about a week after the case was filed.

Judge Stacey L. Meisel of the US Bankruptcy Court for the District of New Jersey ruled Tuesday that the former board members who initiated the bankruptcy lacked authority to act on the company’s behalf.

The dismissal came shortly after the company’s board of directors urged the court to toss the Chapter 11 case. They accused former board members Ram Ajjarapu and Julia Klyashtorny of trying “to wrestle control of the company.”

The dispute arises ...