Court: Circuit City Can Keep Paying Ex-Employees
Circuit City, over the objections of some of its creditors, is allowed to continue to pay severance packages to laid-off headquarters employees, as well as break 150 store leases.
That's thanks to a ruling late last week by a U.S. Bankruptcy judge, the Associated Press reported.
A group of the troubled retail chain's creditors had sought to cease the payments, but the judge, Kevin Huennekens, sided with the company, meaning that the nearly 600 employees will continue to receive paychecks through January. They were laid off prior to the company's bankruptcy filing.