Those of you who’ve been told you’ll be getting X amount weeks of severance if and when your store should close, when bankruptcy is declared all those statements are null and void.
So if you’re sticking around thinking your guaranteed severance, wrong! Management is desperate and will tell you anything to get you to stay. Management’s words have no value. Fire them before they fire you.
7 replies (most recent on top)
I’m the OP, and have experienced a company going bankrupt and it wasn’t a good time. I also have worked for capital investment owned companies, and all they care about is the bottom line, not the employees.
Get out now, for the sake of your sanity.
Again hang the corrupt company officers if found guilty and outside audit companies.If Iran can do it we should do it for financial crimes.If family members knew they should get the same punishment.
@fxn. With Chapter 11 you are correct. With Chapter 7 the company can literally lock the doors with no warning whatsoever, thereby depriving the employees out of their money. That is exactly what happened to my friend at Montgomery Wards. Also, severance is at the discretion of the employer. There is no mandate that an employer has to offer severance.
Part of every single bankruptcy filing is how funds must be spent. A judge decides this...not the company filing. In every case, the judge will ensure employees get both regular paychecks, severance packages, COBRA, etc. The vendors get stiffed on payments which is why they are reluctant to fulfill orders with a company that may file chapter 7 or chapter 11.
@yhr. The retention bonus depends on the liquidator. I have also been through bankruptcies and have yet to be paid a retention bonus. In my cases, part of the bankruptcy was funds set aside specifically for severance. In was in the legal bankruptcy filings with the court.
You mean an amount to work the liquidation? Sure. They don't pay after the store closes.
If a company declares bankruptcy any money left goes to the lawyers and financial people working on the bankruptcy. Chances for severance are slim.
If you want to stay then stay. If you can't find another job then obviously stay so you'll get unemployment.
But do not stay for a few weeks severance that you most likely will not receive.
Sorry OP how many bankruptcy’s have you been through….what’s that zero. Please stop speaking if you don’t really know. Liguidators usually pay a retention to staff which is usually the same amount as severance. Been through two of theses.