We are the last on the list in case of bankruptcy. Meaning whoever is laid off will get a big fat zero from now on. Perfect. Just perfect. As if things weren't bad enough at Bed Bath & Beyond as it is, now we're hit with this as well. I can't believe I'm envious of the people who were laid off before this.
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If BBBY files Chapter 7, the following applies:
With the exception of secured creditors, which are typically given the highest priority for repayment, creditors that are owed wages, salaries or commissions are given a higher priority for repayment than other creditors. Each individual employee of a bankrupt employer is given a priority of $15,150 (as of April 2022, adjusted to inflation every 36 months) of all wages, salaries or commissions the employee earned up to 180 days prior to the organization filing for bankruptcy. In some cases, there will be sufficient assets to satisfy employee claims in full; in others, employees may be compensated for only a portion of their claims or receive nothing at all.
However, I do not know the amount of secured debt which BBBY has, so that will determine if the above section applies or not.
The above information is from:
https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/wagesandbankruptcy.aspx
@ @rbe+1kXIrkJz: You are closest here to accuracy in my book. Large creditors like Sixth St and JPM will be first in line and THEN the employees and smaller creditors per many posts I have been reading. Now that just may be that they agree with each other but most of these posters have a ton more experience in bankruptcy than us. It is part of that FOLO strategy that 6th pulled on them when Bloodbath was begging for money - it gave them priority in bankruptcy. By this metric, yes, they were taking full advantage of employees, but hey, they've always done this at BBBY.
Someone once said Bloodbath cannot even close a store properly.
Or a chain.
They were right.
@1ytz+1kXIrkJz You are only partly correct. Employees are owed whatever they have worked and not paid for. Severance is not mandated and BBB does not have to hand out severance packages. They do have to pay employees salaries they earned (worked). That is all they are on the hook for.
@1zyq+1kXIrkJz This is false. Every bankruptcy judge pays employees first.
Creditors get paid first and last creditors who are left, i.e. employees gets what is left, so best to quit now before the inevitable chapter 7. Remember unemployment also covers loss of hours.
@gov+1kXIrkJz. Absolutely not true.
Not one comment here is true. I was closed one month ago and received all my due payments via direct deposit for my regular pay and got a live check for my severance. The stores that just closed this weekend according to my colleague got theirs as well. It was different and they got a check card, but it was all there.
Laid off mid December recieved 4 of 16 payments was supposed to get remainder 1/26 lump sum. NADA and only crickets from BBB.
Getting no information or help from anyone at BBB when you were laid off months ago, imagine now when anyone left that could help will be laid off at the same time!
Store closed on 12/30. Was told we would receive severance bi - weekly. Actually received one lump sum. The only thing you can count on is receiving no info from Bed Bath. No support from DM’s. We obtained more info from the liquidators then Bed Bath. I am sad About lost jobs but what bothers me most is all the sacrifices done for Bed Bath and to just be tossed to the curb without remorse from Corp. Trust was given to Those making decisions and they failed us.
@wrb+1kXIrkJz I don't think it is insensitive to say that, but I do feel bad at the same time. It has also been said countless times that when it's going to happen it's going to happen FAST! Looking back all of that was spot on. Harmon was lopped off so quick people who work for that concept woke up one day to liquidation with no warning. The same is going to happen to the rest of BBB.
One of the smart ones. Took action before they did. Good job
I said this back in DEC 2020. Closed our store a week before Christmas. Got my paycheck and my severance a couple of weeks after. Covid happened so my unemployment kicked in and eligible for extra 600. Laughed all the way to the bank. Told everyone back in April 2021 to bail but you didn’t listen. Was with them 17 years but seen the writing on the wall 5 years after. Go-k luck!
Was Part of the August 2020 Layoffs …Was given Over 10k in Severance……the crew Won the BBB lottery 💪💪💪💪💪💯
The 1/10 layoff people haven’t been paid severance yet. A big fat email saying that payment was being delayed.
I thought that was a given. Lol
You do realize it’s been posted here countless of times and repeated endlessly about the longer you stay the chances of getting any severance diminishes.
The company is close to announcing bankruptcy and they aren’t hiding that as well. Either stay for a steady pay or leave for something more stable.
Under Chapter 11 reorganization, the employer has basically asked the court to assist with a repayment schedule or with selling off company assets as a means of raising money to pay off creditors. A reorganization under Chapter 11 normally means the organization will continue normal business operations under the protection of the court until the time it is able to resolve its financial affairs. The filing of a Chapter 11 reorganization should have no direct impact on payment of employee wages.
Under Chapter 7 liquidation, the organization is informing the court it is no longer able to meet its financial obligation to creditors and is dissolving the business. With Chapter 7 liquidation, the bank will prioritize creditors into the order in which they are to be paid off. Under this classification of bankruptcy, when an organization owes employees' wages, the employees then become creditors of the bankrupt company. As with other creditors, employees who are owed wages share in the remaining assets of bankrupt employer.
And not to add to it, but some discussion of not making payroll.
Not to be insensitive, as someone who waited until this past November to leVe, you were told and warned that this was where it was going. Why are you surprised now?