- Associated Press - Tuesday, June 11, 2019

CHAPIN, S.C. (AP) - A South Carolina gun and sporting goods distributor is filing for bankruptcy amid allegations of mishandled funds borrowed by its majority owner.

News outlets report Ellett Brothers has its first hearing in bankruptcy court on Tuesday.

Lending company Prospect Capital Corporation is suing the distributor’s majority owner, Wellspring Capital Management. Prospect says it lent Ellett Brothers $160 million to shore up the distributor, but the money went instead to Wellspring shareholders.


TOP STORIES
Rashida Tlaib deletes tweet blaming 'white supremacy' for New Jersey shooting
White House, GOP at odds over Senate impeachment trial
Obama DOJ declined 'defensive briefing' for Trump campaign on Russia


Wellspring is a private equity firm in New York that bought Ellett Brothers in 2008.

Attorneys for Ellett Brothers and for Wellspring couldn’t immediately be reached for comment.



The distributor’s corporate parent, SportsCo Holdings Inc. says it plans to liquidate its holdings, citing excessive debt and inventory.

Sign up for Daily Newsletters

Manage Newsletters

Copyright © 2019 The Washington Times, LLC.

Please read our comment policy before commenting.

 

Click to Read More and View Comments

Click to Hide