Bid for Receiver at St. John’s Subsidiary Rejected

A Superior Court judge on Tuesday rejected a motion to have a receiver appointed to control Amen Wardy Home Stores LLC, a subsidiary of upscale women’s clothier St. John Knits Inc.

In an ongoing court battle with the Irvine-based St. John, the home store chain’s namesakes--Amen Wardy Sr. and Amen Wardy Jr.--had asked the court to appoint the receiver. The Wardys have alleged that the home store chain has been mismanaged by St. John executives since Amen Wardy Jr. was fired last year as the subsidiary’s chief executive.

Since the motion was filed, retail veteran Peter Buonocore was hired to run the small chain of stores. An attorney for St. John executives told the court the home stores’ performance is improving.

Judge David R. Chaffee in Santa Ana declined to appoint a new manager, saying that the dispute will eventually be ironed out in court and, if called for, damages will be awarded later regardless of who is managing the home store.

Amen Wardy Jr. has filed a wrongful termination lawsuit against St. John and its executives. St. John filed a countersuit accusing Wardy of a variety of misdeeds, including diverting assets.

The Wardys and another investor have a 49% stake in the home stores. St. John owns the other 51%.