Tweeter Reopening Delayed
By Alan Wolf -- TWICE, 12/4/2008
Wilmington, Del. — An expected reopening of Tweeter’s stores has been delayed as parties continue to wrestle with the details of the company’s Chapter 7 bankruptcy, which was approved by a federal court here on Monday.
Employees were informed that it may be another week to 10 days before the liquidation sales would resume. Meanwhile, staffers continue to await back-pay and promised bonuses, and some $15 million in inventory, furniture and fixturing remains locked in the chain’s 70 remaining stores.
A motion by Tweeter to convert from Chapter 11 to Chapter 7 bankruptcy was granted by the United States Bankruptcy Court in Delaware after the company unexpectedly shut all its stores and terminated its staff. The conversion was to allow the retailer to continue liquidating its inventory and real estate, and to provide for a $900,000 fund from which employees were to be immediately paid accrued wages and commissions.
Whether the stores will reopen remains unclear, however, as the headquarters office have ceased operations and Tweeter’s liquidators filed an objection to the Chapter 7 conversion, demanding immediate payment for about $1.8 million in services.
Tweeter said in a court filing that it was forced to cease operations on Dec. 1 after its cash well ran dry. The chain was unable to access funding from primary lender Wells Fargo once the bank was paid back in full under terms of the Chapter 11 filing, and secondary lender Schultze Asset Management — Tweeter’s corporate parent — was unwilling to foot the bill for continued closeout operations.
Schultze was expected to resume liquidation under Chapter 7 and fund the employee payroll account. A separate $1.2 million trust to cover legal expenses was to be funded by Wells Fargo.
Tweeter filed for Chapter 11 bankruptcy protection last month, citing “a severe liquidity crisis brought on by slow sales caused by declines in discretionary consumer spending.”
The 36-year-old chain, which was acquired last year by Schultze Asset Management after a previous bankruptcy filing, estimated its liabilities at between $50 million and $100 million.
Clickhereto read TWICE's complete coverage of Circuit City and Tweeter.
-
What regional managers? What salespeople? If they have applied for unemployment returning could cause them to reapply. Many have already landed in new jobs.
zzzz - 2008-11-12 10:06:00 EST -
I have been on the phone for days trying to find the answers to my questions. Is anyone getting the vacation pay or commission bonus and when is It going to happen?
It seemed like no one had the answers. I have got nothing but the run around. I get voice mail with no call back. It seems like most of the people that I have talked to know as much as you and I, Nothing!
So feed up I called Hudson capital Yesterday and Dave filled me in on as much as he knew. He told me Nothing is in writing yet. But this is what he told me. There was going to be a phone conference with the regional managers to discuss
1. If on Monday the chapter 7 trustee and the court approves the stores will be re-opened for one week to continue the liquidation and to let customers pick up already paid for merchandise.
2. The money that is made from the from the stores during this week will be what Hudson pays vacation time and promised commission out of.
If the stores do not re-open for this one week and the liquidation is not carried out there will be no bonus and no vacation time will be payed.
3. I can't get an answer from anyone as far as when the insurance is going to end. But there were no deductions taking out of the last check so i am thinking it will end very soon.
I wasn't an employee of sound advice. my husband was. I have read the blogs thanks you for everyone that has kept us posted on any new information.
I hope that this helps. Like I said before I was told by Dave "THAT NOTHING IS IN WRITING YET". He also says the is an 80% chance that they will get it approved by the courts.
After the court hearing on Monday I plan to call him. To find out what happend.
April - 2008-11-12 07:38:00 EST -
A associate of mine who works for the telecommunications/security inductry informed me that the phone/internet service in many of the tweeter/sound advice stores is being restored as I typer this. A indepent video surveillance firm has been contracted to upgrade/install remote video monitoring systems in the reaming stores to decrease shrinkage/dishonest behaviour. The systems are being installed on a short term "lease" and will be removed once the stores are closed for good. THe system will more than pay for itself in increased profits/decreased theft. Inventory is also being taken to get a real idea of what remains in the stores. Expect them to re-open by this weekend to finish up the liquidaton by Christmas. With the right management team and systems in place maximum profits will be gernerated from the inventory that remains.
Brandon - 2008-10-12 15:44:00 EST -
I know how all you feel. And i feel for all of you! I'm an X employee who seen the writing on the walls about 3 yrs ago. too many chiefs not enough Indians with very wasteful habits. I hope it works out for the best for everyone still involved. I started my own business doing the same thing i did with tweeter except i make the decisions now. (i'm busier than i actually want to be). i'm by no means bragging just stating i made the right decision back then.
Wish everyone the best of luck.
Hoss - 2008-9-12 00:36:00 EST -
APPLAUSE APPLAUSE to the composer of the last post. I absolutely loved reading it. Best holiday wishes to you and your family. motion
motion - 2008-8-12 18:52:00 EST
No related content found.
VIEW ALL GALLERIES