Thread regarding Sears layoffs

Unfortunately it doesn't work that way. If Chapter 7 is filed, you CANNOT be paid out of the safe/register!

@VAqEit5-fqh wrote: "If I don't see a deposit in my bank account I'll have a word with the people in the cash room and get cash instead."

If Chapter 7 is filed, any money in the store fund will be "frozen" by order of the bankruptcy court and relinquished to the court. It will be placed in the escrow of the court for later disbursement. If your pay is not direct-deposited, you may receive your pay weeks (or possibly months later) as you are then classified as a creditor. Your manager would be violating a court order if they paid you out of the cash office safe or register, which can get them convicted of a felony and facing huge fines.

If Chapter 11 is filed, you will almost certainly still be paid on time. Whether you still have a job after the pay period, nobody knows, but you would still have the money direct-deposited into your account as it happens ordinarily.

What's probably going to happen if Sears files (or plans to file) Chapter 7 is that they will minimize their liability. It's pretty simple on how they will limit their liability, they will minimize the continued accrual of debt. In other words, the stores will shut down as soon as the proceedings commence since Sears will accrue debt with the continued operations of the retail stores. That's usually how it happens if a retail entity files Ch. 7 (or, for that matter, any industry). Obviously all that inventory in all the stores will have to be liquidated, but it will be a liquidation company running the stores and any and all employees working in these stores will be employed by the liquidation company. Your employment in Chapter 7 will likely end as soon as they say the word "go". You may resume your employment but it will not be with Sears.

In Chapter 11, business will continue as usual for the most part, but do expect some additional store closures and/or eliminated positions. There is no way Sears will be able to restructure without making additional cuts.

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| 1121 views | | 7 replies (last October 12, 2018) | Reply
Post ID: @OP+VB1vNW3

7 replies (most recent on top)

twh

you must be a lot of fun at parties.

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Post ID: @wvp+VB1vNW3

When Chaper 7 is filed, they pay off debts in order that is specified by law. Government get their taxes first. Unlikely much. Number two are employees. Stockholders are last. Normally they get zero. Don't worry about not getting paid, worry about finding a job.

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Post ID: @dch+VB1vNW3

You'll never work retail (or many other jobs) again if you end up with crimes like these on your record!

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Post ID: @twh+VB1vNW3

I'll take the money, and add it to the cart full of other stuff I'll be leaving with.

Good luck to you!

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Post ID: @nby+VB1vNW3

Legal mumbo jumbo is still legal. If you took that disbursement, you'd be breaking the law and committing a felony. good luck with that.

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Post ID: @xbr+VB1vNW3

Ignoring your legal mumbo jumbo...I'd go in the cash room, key in a disbursement for my pay, print the disbursement report, sign it, take the cash.

Done.

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Post ID: @ujd+VB1vNW3

Just wheel some merchandise out the door and sell it on facebook marketplace. That's what most of the 'customers' do already anyhow.

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Post ID: @mtj+VB1vNW3

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