Home Depot, one of the largest retailers in the country, has filed for bankruptcy protection.
The bankruptcy filing by the nation’s largest retail chain is the latest chapter in a long-running dispute between the company and the Department of Justice.
The filing, which was filed in the United States Bankruptcy Court for the District of Columbia, also calls for the dissolution of the Home Depot Group.
The bankruptcy filing is the result of a $4 billion settlement with the Justice Department, which alleged that Home Depot misused federal grant money to develop a competitor, Lowe’s, in the retail space.
Under the settlement, Lowe was forced to make substantial investments in its own products, including a $2.6 billion acquisition of the retail chain’s online store, Home Depot.
This was after the DOJ alleged that the company was misusing government funds to fund its own private marketing campaigns.
The filing by Home Depot also includes an acknowledgement that Lowe’s had “a positive business relationship with Home Depot” prior to the DOJ investigation.
It goes on to say that Lowe “was unable to make an adequate profit from the relationship.”
The DOJ is alleging that Lowe committed “false and misleading statements” to investors and customers.
The company’s financial situation has been the subject of speculation over the last few years, particularly after Lowe’s stock began to drop.
The company is a defendant in a class action lawsuit that alleges that Home Furnishings, Inc., a Home Depot affiliate, falsely advertised Home Depot’s inventory to consumers and that Home Estates falsely claimed that its inventory was superior to Home Depot stock.
The DOJ lawsuit alleges that Lowe did not have the necessary financing to continue operating, but it is unclear what the terms of the settlement are.
Lowe’s bankruptcy filing comes on the heels of a similar bankruptcy filing from Walmart, which is facing similar accusations.
Walmart has not commented on the filing.
Home Depot has a strong track record of success in the space.
In 2014, the company earned $17.6 million in sales for the quarter, which included a profit of $2 million.
In 2016, the retailer posted a net income of $5.6 to $5 billion.
In the latest filing, HomeDepot alleges that it “failed to properly address the adverse impact on Home Depot from the [Justice Department] investigation and the settlement.”
The company also alleges that the DOJ did not provide it with any information about the settlement and its impact on its operations.
The Justice Department has not yet commented on HomeDepots bankruptcy filing.