LHLC CORP. v. CLUETT, PEABODY & CO., INC.

Nos. 86-3055, 87-2002.

842 F.2d 928 (1988)

LHLC CORPORATION, Plaintiff-Appellant, v. CLUETT, PEABODY & COMPANY, INC., and Deloitte, Haskins & Sells, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided March 3, 1988.

Rehearing and Rehearing Denied April 11, 1988.


Attorney(s) appearing for the Case

Bruce Rose, Beigel & Sandler, Chicago, Ill., for plaintiff-appellant.

Wilbur H. Boies, McDermott, Will & Emery, Joan M. Hall, Jenner & Block, Chicago, Ill., for defendants-appellees.

Before CUMMINGS, EASTERBROOK, and MANION, Circuit Judges.


Rehearing and Rehearing En Banc Denied April 11, 1988.

EASTERBROOK, Circuit Judge.

For many years Henry C. Lytton & Co., which operated a number of department stores, was a subsidiary of Cluett, Peabody & Co. In 1983 Cluett sold its stock in Lytton for $14.5 million to LHLC Corp., a closely-held firm that financed the acquisition almost entirely by debt, which it hoped to repay out of income from Lytton's...

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