gwilks98

Well, they were already closed (without notice). They are just going to stay that way. I was digging that chicken sandwich. Suck.

http://www.stltoday.com/stltoday/bus...C?OpenDocument

Here is the story.

Efforts by a bankruptcy trustee to put together a financing package have failed and two dozen Wendy's Old Fashioned Hamburger restaurants in the St.
Louis area -- closed since early this month -- won't reopen.

The closings mean unemployment for nearly 1,000 workers in eastern Missouri and downstate Illinois.

Once the case is converted to a Chapter 7 bankruptcy to dismantle the company, WenAmerica of Chesterfield, then "one of the highest priorities will be claims by employees for wages and vacation pay," said Charles Riske of Clayton, the bankruptcy trustee.

Riske had been appointed by Chief Bankruptcy Judge Barry S. Schermer as a Chapter 11 trustee. Under Chapter 11 of the U.S. Bankruptcy Code, it was Riske's duty to attempt a reorganization of the Wendy's franchise here.

Riske told Schermer on Tuesday that it couldn't be done. In an interview on Wednesday, Riske said he had permission from Wendy's International of Dublin, Ohio, to reopen the stores that had carried the WenAmerica banner.

Riske said it was a matter of financing and management. "We tried hard to put lenders and operators together," he said.

A spokesman for Wendy's International said Wednesday: "Wendy's is committed to St. Louis and Missouri, and our goal is to again serve the market. We are looking at all options for the future."

Before conversion to a Chapter 7 bankruptcy, WenAmerica has a couple of weeks to prove to the Bankruptcy Court that it is not insolvent, Riske said.

Riske said he doesn't expect that to happen and Schermer will then issue a default order and appoint a trustee -- Riske or someone else -- to dissolve the company and pay off creditors with whatever assets, if any, remain.

According to testimony in a companion case in St. Louis County earlier this month, WenAmerica had purchased 46 Wendy's in 1998 in Missouri and Illinois and added five more before financial difficulties forced the closing of more than 20. The remainder shut down earlier this month.

Records show that WenAmerica owed SPCP Group, a hedge fund in Greenwich, Conn., more than $3 million. National City Bank holds mortgages on several Wendy's locations. Eagle Bank & Trust Co. holds mortgages on seven other stores.

Last week, Riske said, he told Schermer he hoped to open 22 of the closed stores and Wendi Alper-Pressman, a lawyer for National City, agreed to hold off on foreclosures.

Besides back pay to employees and unpaid debts to financial institutions and suppliers, WenAmerica also owes "in excess of $2 million in taxes,''
Riske said.

On Friday, Riske said he would appear before Schermer and ask the judge's permission to abandon the personal property in the stores and to reject the existing leases.

That would allow creditors who have liens against the equipment, which Riske described as "fairly old," to take the property and would allow landlords to get their stores back.

If he is appointed as the Chapter 7 trustee, Riske said, he would act as a "forensic accountant to find out where the money went."

__________________
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Prngr44

This should go in "Suckage" 'cause it does.

I remember a few weeks back going to one on the east side finding the doors locked. I just can't think that SOMEONE won't open them back up.

johnnymk

Twenty four Wendys in one city sounds like way too many for one area. What were they thinking?

Markel

"What? A Wendys on every corner? We said Walgreens, not Wendys!!!!"

__________________
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Prngr44

It's actually 24 in a metropolitan area... many cities.

ryan_self

24 Wendys employed 1,000 people?!

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cadetevon

Yah, but you gotta remember most of those would have been students, not allowed or able to work a full 40 hours a week.

I employ three students where I work so that I might get a full 40 hours (and a bit extra).

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Funny: My Next Wife.

DarkFury

Pretty much that vaguely averages out to 10 employees per location with 4 shifts during the day.

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ryan_self

I'm still stunned that Wendy's has 10 employees on at all times. You figure one manager, 3 cooks, 3 tellers even during the heaviest rush, that's 7 people. Maybe one assistant manager, 2 tellers and 2 cooks during slower periods, that's 5.

And they're still always slow!

That makes sense....the place I used to bartend at had high schoolers hosting and running food, and we had 7-8 people filling a handful of shifts.

renovation

what sucks is the people who worked there at minimum wage or just above were left without paychecks they really needed! and it maybe a while before they see that money.
i think wendys international corp should pay them and collect from the sub corp.

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blueindian

i worked at wendy's for about 5 years..in high school and college. my store had about 30-35 employees. 10-15 full time and the rest part time. we had some folks that worked like 8 hours per week.

i tell you this, that was fun job to have during high school.

__________________
yeah, pretty much we missed the boat on that one. but it's still here. get you some.

ryan_self

Why in the world should they be paid? They're no longer working!

Markel

Ryan, the article states "Once the case is converted to a Chapter 7 bankruptcy to dismantle the company, WenAmerica of Chesterfield, then "one of the highest priorities will be claims by employees for wages and vacation pay," said Charles Riske of Clayton, the bankruptcy trustee." Apparently there are unpaid wages (and vacation) due to the bankruptcy filing. I'm not agreeing that Wendy's corporate should be responsible for the wages (in fact, I would disagree with that) - just pointing out that the suggestion was regarding employees being paid for hours they had already worked.

ryan_self

I don't disagree that unpaid wages should be paid. Vacation time is generally a use it or lose it proposition.
I think renovation was suggesting that the company continue paying a stipend to employees, which I found offensive.

Sirrich3

They are building one down the street from me...

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Markel

Vacation time is "use it or lose it" as long as you are working for the company (for example, if I don't use my vacation this year, I can't carry it over to next year except in certain exceptions). However, if you leave the company, they owe you for unused vacation time that you have accrued based on your current salary.

As far as renovation's post (employees "were left without paychecks they really needed! and it maybe a while before they see that money."), I saw nothing suggesting that the employees be paid anything beyond the paychecks that they were owed (hence the statement that it would take a while before they see the money that they are rightfully owed, but likely in immediate need of). I see no requirement on the part of Wendy's International to undertake the legal oblications of a local franchisee (as if this were the case, I am sure that there would be some unscrupulous scum that would try to take advantage of it for their personal profit). On the other hand, if they wanted to show some consideration and help the employees that lost their jobs by covering their back wages (and line up with the other creditors of the bankrupt organization), it would be a nice gesture. (However, I'm not sure of if they could bring a legal claim in that manner.)

ryan_self

As I understand it, that's generally accepted company behavior, but not a law, right? Or maybe it's a law that varies state-by-state. I know I switched jobs in VA recently, and several of my friends expressed surprise that my company cashed out my unused vacation time.

Also, do hourly wage employees have "vacation time" per se? It's just unpaid time off, right?

Markel

This would be quite business-dependent. I'm on salary, but hourly workers where I work get the same amount of paid vacation that I do.

ryan_self

Wow, that's pretty generous.

renovation

ryan self-you assumed wrong!

Not to get too personal ryan, but what you do for a living?

I own a constuction company which has had as many as 15 employees on hourly working for me and they always had to be paid before I did. I also ran a medical staffing company for 4 years with 500 plus employees in just my one office and had to keep the sum of 1 months employment payroll in the account at all times. So yes, the hourly employee should be payed before any bill collectors are.

If Wendy's was not watching the franchise state of problems close enough, they should stand up and pay these employees all that are justly owed them. (and know i'm not the worlds best speller or brightest person in the world). But what's right is right! There are some laws that very state by state on employees payroll accounts.