The trustee overseeing the chapter 7 bankruptcy of Missoula, Mont.-based Vann’s Inc. has filed a civil lawsuit accusing CEO George Manlove and former CEO Paul Nisbet of driving a “moderately successful company into financial ruin,” according to an article in yesterday’s The Missoulian. The suit, filed by trustee Richard Samson, says that the pair violated federal law and were in breach of their corporate duties as managers of the now-defunct company. Vann’s Inc. was founded as a single Missoula store in 196 and grew to include four retail locations across Montana, an online store, and two sister companies, The ON Store and BigSkyCountry.com. Vann’s filed for bankruptcy in August 2012. The suit claims that Manlove and Nisbet “substantially depleted” Vann’s cash flow by spending more than $500,000 a year on above-market rent to two side companies they they owned, as well as on “self-approved bonuses at a whim.”
