BOARDMAN Rulli's open during auction

THE VINDICATOR, YOUNGSTOWN
The high bid of $825,000 is subject to bankruptcy court approval.
By PETER H. MILLIKEN
VINDICATOR STAFF WRITER
BOARDMAN -- With the store entangled in a bankruptcy case and a family dispute, Rulli Bros. Market remained open for business as usual Thursday evening as the building and the land it occupies were auctioned off in the parking lot of the grocery and Italian foods specialty store.
Frank Rulli, owner of the separate Rulli Bros. Austintown, who bid $825,000, was the highest of several bidders for the Boardman store, which his brother, Anthony Rulli, operates.
Frank Rulli's bid is subject to approval by U.S. Bankruptcy Court Judge William Bodoh, who ordered the auction as part of a plan to reorganize debts incurred by Anthony Rulli and his wife, Karen. Anthony and Karen Rulli had filed a personal Chapter 11 bankruptcy case in February 2000.
Family members: Under cloudy skies and balmy 75-degree weather, a crowd of several dozen, many of them members of the Rulli family, gathered in the parking lot of the store at South Avenue and Mathews Road, as Auctioneer George Roman III conducted the sale.
"You are buying the real estate only. You are buying this real estate on an as is, where is, basis. To the best of our knowledge, there are no recorded leases for this property," Roman announced as the auction began.
The auction included the building that houses the store at 5780 South Avenue, the land it occupies, and the store's parking lot, but not the contents of the building or the store's name, said Atty. Jeff Adler, who represents Anthony Rulli.
"We had a feeling that Frank would bid what it took to get him the land. We're disappointed in the outcome that Frank was able to buy the property," Adler said.
Going into the auction, Frank and Anthony Rulli and their brother, Nick, shared equal ownership of the real estate where the Boardman store is located through a partnership called FAN Co. The Boardman business is owned by Rulli Bros. Inc., a corporation owned by the three brothers.
Court documents say proceeds of the auction are to be divided equally, with Anthony's share going to his creditors, and the other two-thirds to Nick and Frank Rulli.
"The business is in good shape. It's profitable," Adler said of the Boardman Rulli Bros., which employs 42 people.
Failed businesses: Court records say Anthony and Karen Rulli enjoyed prosperity until 1994, when they expanded their business interests to include Howland IGA and Ohio Auto Group, both of which failed.
Among Thursday's bidders was Henry Nemenz Jr. , who was considering the Boardman Rulli's site as a Nemenz Save-A-Lot store. Roman declined to release the list of registered bidders before it officially becomes part of the bankruptcy court record.
The crowd was quiet throughout the auction, which was orderly, but an argument erupted among members of the Rulli family after it ended. With sirens wailing, three Boardman Township police cruisers arrived shortly after Frank Rulli left in a van. The crowd quickly dispersed after police arrived. There were no arrests or injuries. None of the Rulli brothers would comment on the record after the auction.
As to whether Frank Rulli could simply take over operation of the Boardman store if Judge Bodoh approves his offer, Adler said, "That is in litigation in common pleas court. There's a lawsuit pending in common pleas court between the brothers over the corporation itself. So that is yet to be decided, I guess."
That case has been pending for about nine years, he said.