Ex-C.O.O. Sues Marsh Supermarkets

INDIANAPOLIS -- David Marsh, former president and c.o.o. of the Marsh Supermarket chain here, and member of the Marsh family, is suing the company, alleging that the cash-strapped chain shortchanged him in severance pay and benefits, to the tune of more than $33,000 a year.

The ex-c.o.o.'s action follows on the heels of another lawsuit filed earlier this week, by the company's former community relations v.p., Jodi Marsh, who is suing the company for $2.16 million, stemming from a claim that she has received no severance. She is also seeking a divorce from David Marsh.
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The pair of lawsuits hits just days before a scheduled special meeting of Marsh Supermarkets' shareholders, who will vote on the $88 million buyout offer the board of directors, along with David Marsh's father, Don E. Marsh, struck with private equity firm Sun Capital Partners. The meeting is scheduled to take place tomorrow.

The lawsuits are just the latest in legal and financial troubles beleaguering the company. A shareholder sued the company in federal court Aug. 2, accusing Don Marsh and other directors of mismanaging the company and squandering its capital before agreeing to a recent merger. That complaint seeks to block the pending Sun Capital Partners' acquisition.

Marsh Supermarkets on Monday asked a judge to dismiss that suit, claiming that plaintiff Irene Kasmer lacked legal standing to challenge the merger under Indiana law.

The company operates 69 Marsh supermarkets, 38 LoBill Foods stores, eight O'Malia Food Markets, 154 Village Pantry convenience stores, and two Arthur's Fresh Market stores in Indiana, Illinois and western Ohio.
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