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Photo courtesy of Kurtzman Carson

Estimated liabilities for Archway Cookies and Mother's Cake & Cookie Co exceeded assets by almost a 10 to 1 margin.

The committee of unsecured creditors of Archway Cookies LLC, an entity that filed Chapter 11 bankruptcy on October 6, 2008, filed suit last Friday against the private-equity firm Catterton Partners, company management and others for what it called "widespread accounting fraud that permeated throughout the debtor's management," according to the complaint. 

The suit was filed on January 24th two days after the case was converted to Chapter 7.  Catterton Partners, based in Greenwich, Connecticut, acquired Archway & Mother's Cookie Company, Inc., based in Battle Creek, Michigan, and its three operating subsidiaries in 2006.