More than two months since Barneys New York’s property had been bought to Authentic Brands Group, sparking liquidation gross sales at the former retailer’s remaining shops, a gaggle of longtime workers say they nonetheless don’t know the way this ends for them.
On Monday, a gaggle of gross sales associates and different workers of Barneys’ Madison Avenue location in New York City instructed the federal chapter court docket overseeing the case that they nonetheless haven’t been instructed when their employment formally ends, or obtained any assure of their pensions, or severance, or funds for unused advantages.
Some workers have merely left, moderately than wait round for solutions in the uncertainty, the workers stated of their letter.
“We believe it is totally unreasonable that we have not been given any idea of what we are getting paid on closing,” the workers stated. “We are assuming by law that we are entitled to these above mentioned benefits, but we are not lawyers, so do not know for sure.”
Generally, employers in New York don’t should make severance funds to workers who’re laid off, and what these workers are owed normally is determined by the contract phrases in query, employment attorneys stated. Large employers with a well-established course of for layoffs might have some kind of severance plan in place underneath The Employee Retirement Income Security Act of 1974, a federal regulation.
“Most employees don’t have contracts, but if they do, they may have clauses that provide for payments upon their termination under certain circumstances,” stated Laurie Berke-Weiss, principal lawyer of boutique employment agency Berke-Weiss Law PLLC, who is just not representing any workers in the Barneys case. “Sometimes, employers are willing to negotiate severance pay on a case-by-case basis.”
The ongoing liquidation gross sales are being overseen by Great American Group, a subsidiary of B. Riley Financial Inc., one in all Barneys’ debtor-in-possession lenders after it filed for Chapter 11 safety in August. B. Riley additionally teamed with ABG in its $271.four million deal to purchase Barneys’ property, which closed in November.
A consultant for Great American couldn’t instantly be reached for remark Monday.