Neiman Marcus Sues Federated for Taking Chairman With AM-Federated-Allied
Feb. 13, 1990
BOSTON (AP) _ The new chairman of the Federated and Allied retail chains became the subject of a lawsuit Monday when his former employer, Neiman Marcus Group, claimed he was lured away in violation of his contract.
Neiman Marcus, part of General Cinema Corp. in suburban Newton, said it filed the suit in state court in Dallas, Texas, where the group's Neiman Marcus Division is based.
Named as defendants are Federated Department Stores Inc., Allied Stores Corp. and Canadian property company Olympia & York Developments Ltd., which provided a $250 million cash infusion last year to Campeau Corp., the Toronto- based owner of Allied and Federated.
Neiman Marcus Group accused the defendants of ''tortious interference'' in enticing Allen Questrom to become the chairman and chief executive officer of Federated and Allied, which filed for bankruptcy protection Jan. 15.
Questrom was hired this month to oversee the troubled retail chains.
But in a statement, Neiman Marcus said the defendants pursued him for the new position ''although they knew or should have known that Mr. Questrom had a valid employment contract which obligated him to serve as head of the Neiman Marcus Division until September 1991.''
The retailers, based in Cincinnati, declined to comment on the suit.
The Neiman Marcus Group consists of three operating units: Neiman Marcus, Bergdorf Goodman and Contempo Casuals.