Several companies in the Bob’s Stores and Mountain Sports portfolio will now move forward together in Chapter 11 bankruptcy court.
Today’s court ruling consolidates the bankruptcy process for Bob’s and affiliated stores under the company umbrella. But the question remains: what does that mean for retail employees?
“It's just, we're kind of going through every single emotion,” said a Bob’s Stores employee who wants to remain anonymous.
They say retail employees are being left in the dark about what’s happening with the company. The company had preciously announced store closures for Bob's and Eastern Mountain Sports. Court documents show the company has plans for restructuring and emptying the distribution center.
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And as bankruptcy court proceedings were allowed to move forward today, employees found out that their paychecks were stopped.
“I didn't get paid. Managers did not get paid. Other coworkers have not been paid.”
A state Department of Labor representative says the department only has the federal WARN notice sent last month for 145 corporate layoffs at Bob’s and EMS Sports.
Local
NBC Connecticut has learned that employers may experience a short delay issuing final paychecks, but if the delay is more than a few days, employees can file a complaint with the DOL Wage and Workplace standards division.
The department does have a large number of investigations in the pipeline. A representative tells us the Wage unit currently has 21 investigators handling approximately 2,000 cases in the pipeline, and filers may wait up to a year or more to get a final decision on their complaint.
The employee says they feel heartbroken for those workers who are full time with families.
“They're counting on that paycheck, and they can't pay their rent, they can't go grocery shopping, they can't buy basic necessities.”
The employee says some staff may not show up for their shifts if they don’t get paid by Tuesday. NBC Connecticut did reach out to Bob’s Stores for comment, and we haven’t heard back as of Friday evening.
Meanwhile, customers are showing up to the Hamden store looking for deals as store signs advertise deep discounts.
“Everything is 40 and 80 percent so let’s see if I can find something there now,” said Rose Arce of Branford who was searching for new sneakers for her husband. “They got good prices, that’s why.”
But no one knows how much longer those deals will last.
We did reach out to the president of Bob’s Stores to find out how retail employees are impacted by Friday’s decision, and we haven’t yet heard back.
Bob's Stores and EMS are subsidiaries of GoDigital Media Group. The company release a statement Friday evening:
"We are disappointed by the Bob’s Stores and Eastern Mountain Sports Chapter 11 restructuring filing. While GoDigital Media Group has invested significant resources to support, rightsize, and restructure operations and work toward revitalizing the business, we faced substantial financial challenges - a turn in the market beginning in April 2023, rising interest rates and inflation - all of which impacted company performance. This restructure is a necessary step to enable a healthy business that can continue to serve its communities and grow in years to come.
We know how much Bob’s and EMS have meant to their communities over the last 70 years, and we do not take lightly the impact this will have on those who are employed by, do business with, and shop at these stores. We thank our communities for their continued support for Bob’s and EMS."
