Sissy’s Log Cabin Inc. has gone to bankruptcy court to prevent a Little Rock woman from discharging a $4,500 debt tied to a Rolex watch.
Cindy Wiggs, though, disputes that she owes the money.
The messy case started just before Christmas 2011, when Wiggs’ husband at the time, Darin Wiggs, borrowed $16,215 to buy a 40-mm Black Submariner Rolex and a Yacht-Master Rolex from the luxury jewelry store, which has locations in Pine Bluff, Little Rock, Jonesboro and Memphis, according to a lawsuit filed by Sissy’s in Jefferson County Circuit Court in February.
At that point, the Wiggses owned Pro Builders Supply LLC and Bath Planet of North Little Rock. But then the couple ran into problems. In 2014, the businesses closed and the two divorced.
Sissy’s sued Darin Wiggs in February 2016 in Jefferson County Circuit Court. The suit said Darin defaulted on the payments for the watches and as of January 2016 owed $9,500. It was suing to recover the watches, which it had a lien on. Sissy’s also had named Cindy as a defendant in the lawsuit to get her watch.
In March, Darin filed for Chapter 7 bankruptcy liquidation. He listed $556,000 in debts and $46,000 in assets. Payment arrangements were made with Sissy’s for his watch, and his bankruptcy was discharged at the end of August.
On Aug. 2, Jefferson County Circuit Judge Jodi Dennis ruled that Cindy Wiggs had to turn over her timepiece.
When it came time to hand over the watch, though, “she claimed to have sold it to a Little Rock jewelry store,” according to Sissy’s pleadings.
Cindy filed for Chapter 7 bankruptcy later that month and listed $758,000 in debts and $119,000 in assets. In the filing, Wiggs “disputes that she owes any amount to” Sissy’s.
Sissy’s disagrees. It said that the $4,500 that Wiggs allegedly owes shouldn’t be discharged from her bankruptcy because her selling of the watch was considered a “fraudulent transfer.” And by selling the watch, she allegedly “obtained money belonging to Sissy’s,” the lawsuit said.
The company also alleged that Cindy knew there was a lien on the watch but sold it anyway.
Cindy’s bankruptcy attorney, Lyndsey Dilks of Little Rock, said that Cindy didn’t know there was a lien on the watch.
“The allegations … are false,” Dilks said. “Cindy Wiggs did not commit any kind of fraudulent act.”