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http://www.democratandchronicle.com/article/20090911/BUSINESS/909110318/1001/Nukote+blames+Office+Depot+for+bankruptcy+in++217+million+lawsuit
NU-KOTE BLAMES OFFICE DEPOT FOR BANKRUPTCY IN $217M. LAWSUIT
Nukote
International Inc., a Texas-based manufacturer and distributor of
ink-jet and laser-toner cartridges with administrative offices on
Rochester’s northwest side, is blaming its Chapter 11 bankruptcy on
office supplies retail chain Office Depot Inc.
Nukote, which filed
for bankruptcy in June, filed a complaint this week as part of the
Chapter 11 proceedings asking for $217 million in damages after Office
Depot allegedly breached a number of business agreements with the
former supplier.According to the complaint filed with a U.S.
Bankruptcy Court in Tennessee, Florida-based Office Depot began
withholding payments even as Nukote continued to receive assurances it
would get paid and to ship product. The filing also states that in May,
Office Depot breached a contract with Nukote and chose Illinois-based
Clover Technologies Group as its new supplier for printer cartridges.
Office Depot accounted for 40 percent of Nukote’s sales, according to
the court filing.The damages Nukote seeks include $15 million for lost
profits, $12 million in actual damages and $190 million in punitive
damages.Office Depot did not immediately respond to a message seeking comment.
International
private equity firm BC Partners in June invested $350 million in Office
Depot, which has been struggling with collapsing sales and rising
losses.
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