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Thread: Business closes - no $ for payroll. What next?

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    Default Business closes - no $ for payroll. What next?

    So...

    If a business ceases operation - claims they have no $ to pay remaining employees. What's the employees options? Labour board obciously, but is there any other options for restitution?

    Liens on equipment? I remember claiming property from a company that went bankrupt and closed doors during work one day (under auditors scrutiny) - but that was 20+ years ago...

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    You're a priority creditor, but your options there are limited to certain dollar amounts.

    With an employer you are basically taking on counter-party risk.

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    Last edited by Xtrema; 10-25-2016 at 10:08 PM.

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    Ask sanjel employees. Basically, pound sand.
    Quote Originally Posted by killramos View Post
    This quote is hidden because you are ignoring this member. Show Quote
    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    Relevant

    http://www.cbc.ca/news/canada/calgar...abou-1.3818650

    The former staff have been working with an Alberta Employment Standards officer who has informed them it's difficult to recover much of what's owed to them as Farm, the corporation, has no money but has not declared bankruptcy.

    As director of the corporation that owned Farm, Beaton is personally responsible for the last six months' wages, but that is further complicated because she has filed a consumer proposal — a legal process by which insolvent debtors work with creditors through a trustee over a period of up to five years to sort out their debts.
    Last edited by Xtrema; 10-26-2016 at 12:12 PM.

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    And if Revenue Canada is owed any monies, they will always get the first kick at the cat before any priority creditors.
    Will fuck off, again.

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    A company my husband worked for closed up, she owed in excess of $5M in back payroll.
    Why people worked for at least 6 months on the promise they would be paid is beyond me. Luckily my husband only lost $5k or $6k in wages compared to some coworkers who lost over $20/$25K.

    You have no recourse, you are no better than an unsecured creditor.

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    Originally posted by Xtrema
    Relevant

    http://www.cbc.ca/news/canada/calgar...abou-1.3818650
    Gotta love loopholes. What she's doing is perfectly legal.
    Originally posted by SEANBANERJEE
    I have gone above and beyond what I should rightfully have to do to protect my good name

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    I once worked for a company that tanked (Nex Innovations) and while I got my last paycheque (once I returned my laptop) I didn't get the bonus that I earned 6 months earlier.

    However they had a number of assets that were sold with the bankrupcy and about a year afterwards I saw a cheque for the bonus show up in my account from the firm that handled the bankruptcy.

    If they company is big, you might end up seeing some cash eventually. If the company is small with no assets, I wouldn't hold my breath. For now I wouldn't bank on seeing any money anytime soon.

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    Originally posted by rage2

    Gotta love loopholes. What she's doing is perfectly legal.
    It's one thing for a factory to pull this off. Bad PR sometimes is bad for food biz, no?

    And who would work for her now in the new concept.... although wine bar probably need less skill to run than a restaurant.

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    Aaand... Mabou's Google and Yelp reviews are going down the crapper.

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    Originally posted by Xtrema
    Relevant

    http://www.cbc.ca/news/canada/calgar...abou-1.3818650

    Mental note.... screw Mabou Cheese + Bar.

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    She also owns Caffe Beano! EDIT: NM, apparently she sold her stake in 2010.

    If I were them I would be sitting out front of the new store in my chef whites, explaining to everyone customer who walked up what was happening.

    A week of politely informing incoming customers that the proprietor is a wage thief would likely slow down the operation enough to get some notice.
    Last edited by adamc; 10-26-2016 at 03:43 PM.
    DOES ANYONE NEED A GO-JUICE?

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    Originally posted by adamc
    She also owns Caffe Beano!
    She used to but sold in the 90s. Does she own it again?

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    You are best off finding another job ... period.

    Let`s face it, if the company is out of money, how are they going to pay you? Don`t waste your time and energy.

    R
    "I don't look for something; I find something" - Picasso

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    Originally posted by reijo
    You are best off finding another job ... period.

    Let`s face it, if the company is out of money, how are they going to pay you? Don`t waste your time and energy.

    R
    I think you're missing the point, they're not "out of money". The wealthy ownership group used strategic bankruptcy of one business to avoid paying debts, while simultaneously opening another similar business in the same location.
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    .
    Last edited by 01RedDX; 09-23-2020 at 01:49 PM.

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    Originally posted by adamc


    I think you're missing the point, they're not "out of money". The wealthy ownership group used strategic bankruptcy of one business to avoid paying debts, while simultaneously opening another similar business in the same location.
    Now I think this happens all the time in different industries, especially manufacturing or sometimes even retail. It's not new. I'm just thinking that it may not be a good move for service industry, especially one that may take some unique talents to operate.

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    For sure, big businesses get away with it ALL the time.

    However, it's fucking crazy/suicidal to do it as a small businessperson with deep roots in the community/neighbourhood. What these people are owed is fairly insignificant in the grand scheme of opening an entirely new business. If you're truly insolvent, close the shop, apologize profusely, and go back into private life with your tail between your legs. In this situation she needs to pay the people, close the old shop, and then open the new one.

    Shady as fuck to run a small biz this way. And this story is going to have a significant impact on the success of the new business, hopefully.
    DOES ANYONE NEED A GO-JUICE?

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    That sucks to hear Andy. Happened two years ago almost to the day with a big reno company. A lot of people got burned.

    http://forums.beyond.ca/st2/holy-bul...hreadid=386785

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