From 7.3.03 Plain Dealer
"Arter & Hadden files WARN notice"
http://www.cleveland.com/business/pl...9701165780.xml
Now, normally WARN requires an employer to give its employees 60 days notice prior to the business closing, but there are exceptions for a faltering company. Language from the Department of Labor specifically states:
(1) Faltering company. This exception, to be narrowly construed, covers situations where a company has sought new capital or business in order to stay open and where giving notice would ruin the opportunity to get the new capital or business, and applies only to plant closings;
http://www.doleta.gov/programs/factsht/warn.htm
Based upon the memo sent to employees with the following language:
"As many of you know,
we had been negotiating with our lenders in an effort to obtain additional capital as well as with our landlords. We believed that we had a realistic opportunity to obtain rent concessions and the additional funding that would have been sufficient to permit Arter & Hadden to continue to operate going forward.
However, due to the sensitivity of the negotiations, we believed that giving notice sooner may have put the discussions at risk, and eliminated any chance to restructure our debt and continue operations. Accordingly, we are giving you as much notice as is practicable under the circumstances."
the employees will not receive the full 60 days wages and will instead only receive pay until July 15.
aV
