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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsOnce again, a private equity firm pays off investors, shorts pensioners millions
To anyone but a bankruptcy court, this looks like a swindle.
As a grocery chain is dismantled, investors recover their money.
Worker pensions are short millions.
By Peter Whoriskey
December 28
MUNCIE, Ind. Once the Marsh Supermarkets chain began to falter a few years ago, its owner, a private-equity firm, began selling off the vast retail empire, piece by piece. The company sold more than 100 convenience stores. It sold the pharmacies. It closed some of the 115 grocery stores, having previously auctioned off their real estate. Then, in May 2017, the company announced the closure of the remaining 44 stores.
...
It was a long, slow decline, said Amy Gerken, formerly an assistant office manager at one of the stores. Sun Capital Partners, the private-equity firm that owned Marsh, didnt really know how grocery stores work. Wed joke about them being on a yacht without even knowing what a UPC code is. But they didnt treat employees right, and since the bankruptcy, everyone is out for their blood.
The anger arises because although the sell-off allowed Sun Capital and its investors to recover their money and then some, the company entered bankruptcy leaving unpaid more than $80 million in debts to workers severance and pensions.
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They did everyone dirty, said Kilby Baker, 70, a retired warehouse worker whose pension check was cut by about 25 percent after Marsh Supermarkets withdrew from the pension. We all gave up wage increases so we could have a better pension. Then they just took it away from us.
More:
https://www.washingtonpost.com/business/economy/as-a-grocery-chain-is-dismantled-investors-recover-their-money-worker-pensions-are-short-millions/2018/12/28/ea22e398-0a0e-11e9-85b6-41c0fe0c5b8f_story.html
Kablooie
(18,638 posts)msongs
(67,433 posts)Wellstone ruled
(34,661 posts)Watched this happen with a firm I was working for in the mid Eighties. Failure to pay Insurance Premiums,Failure to pay tie IRS payroll Withholding,failure to pay withheld Union Dues,and the biggest one,failure to pay their Employer Pension Payments. Two hundred forty plus workers with zero notice and zero final paychecks.
Irony of this is,the Paper Carrier was Foot-Hill financial of Indiana who got screwed via a bogus final Inventory of Warehouse Stock and Company Equipment as well as Underlying in House financing of Retailers. Several Independent Grocery Stores were either forced into Bankruptcy or a few where able to find a understanding Banker to work with them. And the management team,well they landed on their feet with a New Company and all the money they mined out of their previous venture.
Forgot to mention,the Management Team set up several LLC's and moved funds into those as a way to undermine the viability of our Company.
TheBlackAdder
(28,211 posts).
Does this firm have a federally insured pension?
.