Tweeter Will Not Pay Severance To Departed Employees
Because of its recent bankruptcy filing, Tweeter Home Entertainment Group will be unable to meet severance obligations to departed employees, the company told the Boston Globe.
In March, Tweeter shuttered 49 of its stores -nearly a third of its total- and laid off 20 percent of its workforce. This led to the chain filing for bankruptcy protection under Chapter 11 on June 11. At the time, the company said that it would honor all existing contracts, and employee wages.
“Employees were expecting severance, and the company was really hoping to pay it,” Tweeter CEO Joe McGuire told the Globe. “It’s unfortunate, but it is what it is.” He also said all executives also lost severance packages.