A giant company now makes unexpected layoffs in Arizona after officially filing for Chapter 11 bankruptcy and shutting its stores.
99 Cents Only Stores has advised the Arizona Department of Economic Security that a total of 1,400 employees will be laid off.
It’s important to note that under the Worker Adjustment and Retraining Notification Act, an employer with more than 100 full-time workers must provide 60 days’ notice before laying off 50 or more people at a single site.
Just days after announcing it would liquidate, 99 Cents Only Stores on Sunday filed for Chapter 11 bankruptcy in Delaware.
The retailer’s parent company, Number Holdings, said the bankruptcy process will enable the company to implement the wind-down of its business operations, per Retail Dive.
99 Cents Only listed assets and liabilities ranging from $1 billion to $10 billion.
The company’s top 10 creditors are collectively owed just under $35 million, according to the court documents.
99 Cents Only said it has secured $60.8 million in debtor-in-possession financing, subject to court approval, to facilitate the wind-down process.
Other businesses who announced of upcoming layoffs in Arizona this month include:
- 99 Cents Only. 1,400 job cuts filed on 4/9.
- COR Restaurant Services, LLC. 140 job cuts filed on 4/9.
- Spectrum Home Healthcare LLC. 70 job cuts filed on 4/5.
- North Country HealthCare. 26 job cuts filed on 4/2.
- Volta Charging Industries, LLC. 2 job cuts filed on 4/1.
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Also Read: A Massive Grocery Chain With 400 Stores Is Now Closing
Other Economy News Today
A popular company now makes a surprising move to exit bankruptcy after the pandemic led the business to rack up significant losses.
WeWork said on Tuesday it aimed to emerge from Chapter 11 bankruptcy in the U.S. and Canada by May 31 and had negotiated more than $8 billion, or over 40%, reduction in rent commitments from landlords.
WeWork Inc. is a provider of coworking spaces, including physical and virtual shared spaces, headquartered in New York City.
The shared office space provider, once privately valued at $47 billion, filed for bankruptcy in November as it racked up losses on its long-term leases after demand for office space plunged during the pandemic and from a shift to hybrid working.
The SoftBank-backed company’s post-bankruptcy business plan is premised on a significant reduction in future rent costs from its landlords.
WeWork said on Tuesday that it had agreed to amend about 150 leases with better economic terms, such as reduced rent payments, and it is in the process of exiting another 150 leases.
The company will maintain 150 leases without change, and it is still negotiating with landlords for about 50 additional locations.
WeWork’s lease negotiations will allow the company to exit from bankruptcy as a leaner business, ready to provide workspaces that will benefit both employers and landlords during a period of uncertainty in commercial real estate markets, according to WeWork’s global head of real estate, Peter Greenspan.
“The need for these types of services and spaces has only increased, so it is a good time to go through this process with the landlords and rethink how we monetize all this office space that used to be filled with traditional, long-term leases,” Greenspan said in an interview.
WeWork co-founder Adam Neumann has submitted a bid of more than $500 million to buy back the company, with the financing process currently unclear, reports Reuters.
WeWork declined to comment on Neumann’s specific bid, saying it receives and reviews “expressions of interest from third parties on a regular basis.”
Under Neumann, WeWork rapidly expanded to become the most valuable U.S. startup.
But his pursuit for growth at the expense of profit and revelations about his eccentric behavior led to his ouster and derailed an initial public offering in 2019, reports the outlet.
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Also Read: Your Favorite Tech Company Now Lays Off Over 600 Employees
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