Bankruptcy trustee files suit against Beaulieu officials

Published 2:08 pm Thursday, October 11, 2018

DALTON, Ga. — The liquidating trustee for Beaulieu Group, Beaulieu Trucking and Beaulieu of America has filed suit in federal bankruptcy court in Rome against Beaulieu founder Carl Bouckaert and two dozen others, including family members, Beaulieu executives and Beaulieu board members, as well as more than a dozen companies.

The lawsuit claims the “Bouckaert Family and certain of the other defendants syphoned cash from the the debtors (Beaulieu) by requiring the debtors to enter into agreements and transact business with the Bouckaert Affiliates (companies owned by the Bouckaerts and others) to benefit themselves.”

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It claims “violations of law, including breaches of fiduciary duties and receipt of fraudulent and preferential transfers, among other claims, that have caused substantial monetary losses to the debtors and other damages.”

It says, “In addition to the insider transactions between the debtors and the Bouckaert Affiliates, certain of the defendants also paid themselves exorbitant, above-market salaries, fees and bonuses, and the debtors did not receive reasonably equivalent value in return.”

The suit seeks, among other things, the awarding of compensatory damages “in an amount to be determined at trial” and “awarding the trustee such other and further relief as may be just and proper.”

Bouckaert did not immediately return a telephone message. Beaulieu President Michael Pollard said he could not comment but said he would provide a statement on behalf of all of the defendants. The Daily Citizen-News had not received that statement as of press time.

Headquartered in Dalton, Beaulieu of America opened in the mid-1970s and was at one point the third-largest carpet manufacturer in the United States. The company declared bankruptcy in July of last year.

In October of last year, Dalton-based Engineered Floors and Beaulieu announced a deal in which Engineered Floors would buy “substantially all of the operating assets of Beaulieu.” That deal was finalized a month later.