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Changes at Ricky’s Lead To Lawsuit & Headlines

(Filed Under wholesale Costume News). In April, BODY ran an exclusive story about management changes at Ricky’s, the New York City costume and beauty products retailer, in which Todd Kenig, Carmen Kenig, Jason Sandlofer and Dominique Costello had all departed the company. Now the situation has gotten uglier and more public with a lawsuit and an article in New York’s largest-circulation newspaper.

According to a story in the New York Daily News, “Ricky’s Halloween Inc. is suing its chief competitor and two former executives who jumped ship in a Manhattan Supreme Court action rife with allegations of deceit, subterfuge and skullduggery,” said the report. “The firm, which touts its “sexy, funky and crazy Halloween costumes,” is accusing the defendants of using confidential information they possessed as insiders in a bid to “defame” Ricky’s — and cripple its holiday business.””

Sandlofer and Adam Stupak, an independent real estate agent who worked out of a Ricky’s office, both specialized in finding and leasing spaces for Ricky’s annual Halloween pop up stores.

According to the Daily News report, earlier this year both men “secretly started to negotiate a deal to work for one of Ricky’s competitors, Spirit Halloween Superstores, court papers allege. “F--- them,” Sandlofer emailed Stupak on April 2, according to Ricky’s. “They don’t care about our livelihood or families. Now they see theyf----- up but it’s too late . . . Let them fall.” Ten days later, Ricky’s claims that Stupak emailed a real estate executive to say, “Ricky’s is crashing and burning! Sad to see what’s happening to a great company.””

In the lawsuit, according the the paper, Ricky’s claims the two embarked on an effort to “poison the marketplace,” and hurt the store by “spreading false rumors about its financial health,” and well as steal confidential data.

The filing also states, “In fact, Ricky’s is in sound financial shape, is not going out of business, and fully intends to engage in the Halloween business in 2012.”

Glenn Nussdorf, who owns 50 percent of Ricky’s, remains at the company, as well as Ricky Kenig, for whom the chain was named, and most of the other employees. Richard Parrott has been recently hired to manage “business development.”

Todd Kenig, formerly the ceo and the main contact for many within the industry, told BODY he will serve as a consultant for Ricky’s “for the next four and a half years” and “wishes the new management well.”

Nussdorf founded Quality King Distributors, a large Long Island-based distributor of drugs, health and beauty products and fragrances, in 1961. His family continues to own that firm.

There are about 30 Ricky’s stores, most in Manhattan, but with a few locations in other boroughs, New Jersey, Long Island and Miami.

more wholesale Costume News >>

Published 05-18-2012 by Nick Monjo

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