Employee Files Suit Against Borders For Lost Wages
DETROIT (WWJ) - Creditors have their hands out as the Borders Group Inc. filed for bankruptcy and as WWJ’s Rob Sanford reports, the line is now getting longer.
Since filing for bankruptcy, Borders Group has been besieged with creditors and others who want to be paid for various reasons. Now, one of the firm’s employees who was laid off is filing suit claiming they weren’t given enough warning that the company was being liquidated.
Jared Pinkster wants to collect unpaid wages and benefits according to documents filed with the Federal Bankruptcy Court in Manhattan.
Pinkster says he wants to represent another 300 workers in a class-action filing claiming Borders didn’t comply with federal requirements to give a 60 day notice.
The suit claims that Borders owes employees the wages, salary, commissions, bonuses, accrued holiday pay vacation, 401K contributions, health insurance coverage and other benefits that would have accrued for 60 days following the layoffs.
The bookstore chain, which filed for Chapter 11 bankruptcy protection in February, decided to liquidate and close its almost 400 stores in July after failing to sell its operations to a private equity company.