Fate of Boston Apparel Group Unknown during Bankruptcy
Women’s Apparel Group LLC , a Taunton, Massachusetts-based women’s clothing mail order company, has filed for Chapter 7 bankruptcy protection in Boston’s Bankruptcy Court.
A month earlier, union and non-union workers from Boston Apparel Group , a subsidiary of WAG, received lay-off notices.
According to a news story on www.tauntongazette.com by Charles Winokoor, Boston Apparel Group was created in 2008 when Monomoy Capital Investors of Manhattan purchased the missy division of Redcats USA, which at the time included Chadwick’s, metrostyle and Closeout Catalog Outlet.
The article states that although company officials are not speaking to the media, employees have been doing so. “…if there is a common theme it’s that they’ve received mixed messages as to their employment status.”
A former warehouse worker and former president of UniteHere Local 2001, Marco Pereira, stated that he and 48 other union workers had been laid off but had subsequently received a call from a BAG manager begging him to return to work. He did so but then attended a meeting at which Liam O’Connell, an attorney representing BAG announced that “the 49 layoffs were final and that the remaining 78 union workers were guaranteed four months employment.”Pereira said that O’Connell stated that the company owed between $11 million and $12 million to vendors and lenders.In another instance of seeming miscommunications, a customer service employee, ‘Marie’, reported that she and other non-union workers, who were originally told that they were laid off, were subsequently asked to return to work. She went on to say that they were told that paychecks would be hand-written and that direct-deposit payment had been stopped. She also said that it had been weeks since trucks had “brought merchandise in or out”.
‘Marie’ also alleged that approximately 1,500 customer refund checks had bounced. Company officials state that this was due to a routing number error and that new checks would be sent out; ‘Marie’ had been told it was due to non-sufficient funds. Clearly worried about her financial situation, ‘Marie’ has not received her last two paychecks.If the company that you worked for has closed due to bankruptcy, you are probably experiencing serious financial problems. If you are contemplating filing for a Chapter 7 or Chapter 13 personal bankruptcy, do not proceed without an experienced and knowledgeable bankruptcy attorney from Legal Helpers at your side. For your free initial consultation, please call 800-260-1402 . It could be the key to your financial freedom.
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