As Barney’s bankruptcy continues with the buyout by “Authentic Brands”, the decision made by Authentic Brands to close the majority of the physical stores is leading to more backlash than what they may have expected. With the closing of stores comes the angry mob of laid off workers demanding from the famed retail store that which they are entitled to…a fair severance package and payments for unused benefits.
Knowing this fact, the company called this action taken to be based on “improperly classified claims” despite, according to legal procedure that following bankruptcy proceedings, administrative claims for repayment must have priority as they are seen as “payments for goods and services needed to maintain the company during the bankruptcy”. Yet still, they deny the legal claims made by their employees. Given the size and nature of the claims, this calls into question why Barney’s would refuse to pay their employees what’s due to them. This is only emphasized by the Chapter 11 bankruptcy facing Barney’s leading to the question, are they really in a position where they can afford both the bankruptcy AND new legal proceedings, and if they can afford it, would they be able to afford to pay damages provided they lose that battle?
We’ll keep you up to date on this story as it continues.
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