PhillyInc

Deb Shops Inc. of Philadelphia has leased 280,000 square feet of warehouse and office space from Blue Grass Partnership, which includes chief executive Marvin Rounick, his brother Jack A. Rounick, the company's secretary and treasurer, plus other executives and their spouses. In June, a year before its expiration, the lease was extended to 2012, according to a filing at the SEC. Deb Shops paid $550,000 for the space in the fiscal year ended Jan. 31, and still must pay $3.6 million. The company called the arrangement "fair, reasonable, and consistent with the terms that would have been available to us if made with unaffiliated parties."

- Jonathan Berr