Four former executives of Pirch, the San Diego County-based luxury kitchen retailer that filed for bankruptcy last year, have been sued by the company’s Chapter 7 trustee to collect funds aimed for repaying its creditors.
The complaint, filed Sept. 22 in San Diego Superior Court, alleges that the executives improperly spent around $95 million in customer deposits, pouring that money into a business that was increasingly insolvent and paying their own ballooning salaries.
“As described in the complaint, Pirch management diverted millions of dollars of customers’ deposits to prop up its failing business, while simultaneously increasing executive compensation,” said Ali Mojdehi, a partner with Mojdehi Galvin Rego, the San Diego…