In a statement,
In its filing with the
In a notice sent to employees Wednesday, the distributor of hobby products said the layoffs, if they happen, could begin in April.
The letters were sent as a formal notice under the Illinois Worker Adjustment and Retraining Notification Act, which requires employers to notify employees and the
“I can't speak for the company, but it's usually one of the last steps,” said
“That plan provides for continued funding during the bankruptcy case to support the Company's business operations, including the preservation of employee jobs and related wages and benefits, until the Company can be sold,” Salazar wrote.
“Thus, upon the sale of the company, it is possible that there will be a permanent shut down of all
“If those conditions are not met, then it is possible that the Company may lose access to those funds, and the Company may be forced to shut down its operations.”
In closing, Salazar reiterated that the company hopes to stay open.
“We realize that the uncertainty regarding the future of the Company may be concerning to employees, and we hope to be able to keep the business open through the bankruptcy and sale of the business, in order to minimize the disruption to the lives of our employees and their families,” he wrote.
In its statement,
“And it's the right thing to do for our company and our employees,” Brownstone said. “Under the process afforded to us under Chapter 11, we hope to reach an agreement with our creditors that will allow us to implement a restructuring plan that fully addresses our financial challenges while simultaneously identifying a prospective buyer that shares our vision of providing the best possible outcome for our employees and the future of
According to its website,
And according to the latest top employers report from the
But it has been in a rough patch lately.
After deferring those payments at the end of 2016, then-CEO
The share value of employee stocks recently declined by more than 80 percent, with one former employee saying the value of her ESOP account dropped from just over
“This step follows a number of actions
“Despite these efforts, our business continues to face significant challenges. As we have shared before, we are experiencing increasing competition and our leading product lines have been negatively impacted by market headwinds and a series of one-time events with key suppliers.”
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