Chapter 11 Bankruptcy

[rmedina]

Just got word the company I've been with for over 10 years filed for bankruptcy yesterday. This sucks the big one. I just had to vent somewhere. I'm not worried about myself, but I'm genuinely worried about the guys that worked under me.

[TR930]

Going to be a few more stories like this coming up.

[rmedina]

Originally Posted by TR930

Going to be a few more stories like this coming up.

You are correct my friend. I see your location is Denver. Colorado is one of our markets. Along with Texas, Arizona, Florida, NC, SC, Tenn, and both North and South Carolina. Overall a crappy situation.

[moooza]

Oh god. Did you have any clues before it happened?

[2000cs]

Ch 11 is reorganization, which means the debts get reduced and equity is wiped out. But if successful, the company can continue. Likely with fewer jobs.

Focus on what matters.

I would ensure necessary work is getting done, and spend the rest of my time helping the team get their resumes, on-line presence, etc all tuned up. Provide whatever support they need for the searches including covering for them as they go out to interview. Some of the jobs will remain, but wise employees will get aggressive about finding something better; and as a leader you can facilitate both paths.

If the bankruptcy proceedings transition to Ch 7 (liquidation), there will swiftly be layoffs and at that point it becomes 100% finding new jobs for the remaining team and yourself.

[rmedina]

Originally Posted by moooza

Oh god. Did you have any clues before it happened?

The very first sign was they stopped matching our 401k contributions about a year ago.

[rmedina]

Originally Posted by 2000cs

Ch 11 is reorganization, which means the debts get reduced and equity is wiped out. But if successful, the company can continue. Likely with fewer jobs.

Focus on what matters.

I would ensure necessary work is getting done, and spend the rest of my time helping the team get their resumes, on-line presence, etc all tuned up. Provide whatever support they need for the searches including covering for them as they go out to interview. Some of the jobs will remain, but wise employees will get aggressive about finding something better; and as a leader you can facilitate both paths.

If the bankruptcy proceedings transition to Ch 7 (liquidation), there will swiftly be layoffs and at that point it becomes 100% finding new jobs for the remaining team and yourself.

That's exactly what I'm doing with my team.
Regarding chapter 11, we honestly thought we would survive the restructuring, but within a few days I had my conference call only to be told we're closing ALL stores. All pending inbound PO's were cancelled. Our customer in house financing is out. Our end date was announced (Oct.31st).

[chetrickerman]

Originally Posted by rmedina

Just got word the company I've been with for over 10 years filed for bankruptcy yesterday. This sucks the big one. I just had to vent somewhere. I'm not worried about myself, but I'm genuinely worried about the guys that worked under me.

You work for Conn's home plus?

[zx10guy]

Sorry you're going through this. Just plain sucks. Really hope you don't suffer from what that crook Bill Rouhana did with RedBox. They started with Chapter 11 and quickly went to Chapter 7. In the process, the crook Rouhana didn't fund employee 401k's or pay the insurance premiums for the employees. Yes, that crook took money that was deducted out of employee paychecks and it all disappeared. So people are now left holding the bag with mounting medical expenses due to no insurance coverage. Also payroll hasn't been made nor expenses to employees that used their personal vehicles to maintain those kiosks.

How this guy isn't behind bars is beyond me.