Legnam Corporation operated 132 general merchandise stores in 38 of the United States prior to becoming insolvent in June 1932.
[2] Owing to the financial crisis during the Great Depression, the chain store, formerly known as Mangel's, became unable to pay its debts.
[1] The business was expanding prior to the constrictions brought on by rapid deflation and an absence of consumer spending during the economic downturn.
On May 7, 1929, the Mangel Corporation declared a quarterly dividend of 1.625 per share on 6½% cumulative preferred stock, payable on June 1, 1929.
[3] Legnam Corporation filed a petition for bankruptcy in the United States Federal District Court[1] on June 29, 1932.