In an effort to ride out the current economic storm, many businesses find themselves downsizing, conducting mass layoffs, and even declaring Chapter 11 bankruptcy in an effort to survive.  These tough decisions inevitably lead to disgruntled former employees, whose ethics tend to take a backseat when it comes to “getting even” with their employers. Continue Reading Downsizing & Data Loss – The Alarming Connection

A Mississippi Bankruptcy Court recently addressed several employer defenses to liability under the Worker Adjustment and Retraining Notification Act (“WARN Act”), which is noteworthy in the context of the current economy.  In re FF Acquisition Corp. d/b/a Flexible Flyer, 423 B.R. 502 (Bankr. N.D. Miss. January 20, 2010).Continue Reading Recent Bankruptcy Decision Highlights Defenses Against WARN Act Claims

The drama in late 2008 surrounding the factory shutdown of Republic Window & Doors in Chicago, Illinois, highlighted for banks and other financial institutions the potential backlash when a debtor business fails.  In that situation, the factory’s lender faced a public relations challenge when it declined (with good reason) to continue a line of credit