A judge has awarded $45 million to the sister of Lund Food Holdings CEO Tres Lund in a family dispute over the value of her ownership of the operator of Lunds & Byerly’s stores.
The award was less than the $80.4 million Kim Lund sought for her share of the company, but more than the $21.3 million the company run by her siblings had argued it was worth.
Kim Lund was one of four siblings holding a 25% ownership in the Minneapolis-based retailer founded by their grandparents. The Lund siblings own the company through a series of trusts given to them by their grandfather Russell Lund, who founded the business in 1939. The company today operates 26 Lunds & Byerly’s stores in Minnesota.
Following a five-day trial in Hennepin County District Court in February, Judge Ivy Bernhardson late last week designated Kim Lund as the “prevailing party” in the suit, which was filed more than two years ago. The court also removed Tres Lund as Kim's trustee.
“I have always believed that privilege and wealth are community resources that should be used to lift all boats. My grandparents taught us that giving back to the community was our responsibility and our great joy. This has been my life’s work,” Kim Lund said in a statement. “I sincerely appreciate the Judge’s efforts and hope that my brother Tres will accept the Court’s decision so that the companies and our family can move on and get back to the work that benefits the community.”
The company argued in court that the valuation sought by Kim Lund would “cripple” the company with debt. In a statement provided to SN, a Lunds spokesman said the company was considering its options, which include appeal.
"We have made and will continue to make, every decision in this process with the utmost integrity, respect, and fiscal responsibility. We owe that to our company's extended family of employees and customers."