A restaurant now makes an unexpected closure of 27 locations as employees blast the company for their lack of transparency.
Mod Pizza abruptly shut down at least 27 stores, including five in California, where workers are now left without a paycheck.
Employees at the pizzeria’s location in Clovis, about nine miles north of Fresno, ripped the company, saying they were given a two-day notice their store would shut down, reports The US Sun.
“If they would have gone about it in a better way,” the store’s former assistant manager told Fox affiliate KMPH-TV.
“I feel like I would have, I would feel better about it, but just the lack of notice and all of a sudden just, you know, the hacks for everybody. It’s just disheartening.”
A former shift manager was also upset about how the company went about the shutdown.
“It’s saddened me the way things were done,” the location’s former shift leader told the outlet, adding workers were informed two days before their final shift.
“It definitely was a shock considering that we were kind of told that we had job security.”
The shift leader believes the company pulled the move because of the new $20-an-hour minimum wage legislation for fast food workers in California.
“For the extra money, yeah, I mean, nobody is going to turn down a raise, but at the end of the day, with repercussions like this, was it worth it?” he told KMPH-TV.
“It just kind of seemed like the right timing, two weeks before all of the fast food locations in California got that increase that we closed,” another fired worker said.
Each of the 15 laid-off employees was given a $2,000 severance.
Several diners believe the pizzeria’s sudden closure is due to the new minimum wage for fast food employees.
“The consequences of an unsustainable minimum wage,” one person commented on Facebook.
Another said, “Just the beginning.”
“Hang on to your hats, folks. There’s more to come. Layoffs, closures, etc. This is such a shame,” a third person wrote.
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Other Economy News Today
A bankrupt pharmacy chain now plans more painful closures according to its latest filing made this week, all happening in the same state.
In bankruptcy filings made this week, Rite Aid said they would be closing two additional stores in the Sacramento area.
Rite Aid’s store at 7211 Elk Grove Blvd. in Elk Grove will close on May 20, and 5610 Stockton Blvd. in Sacramento is also scheduled to close on May 20.
The company stated it has neither made nor confirmed any decisions on additional specific store closures at this time.
The company, entangled in over 1,600 lawsuits alleging negligence in monitoring opioid prescriptions, has found common ground with opioid creditors regarding the bankruptcy settlement’s conditions, as articulated by Rite Aid’s legal representative Aparna Yenamandra.
Exclusive voting rights have been granted to bondholders in this bankruptcy scenario, with a deadline set for April 15.
Success in the voting phase would pave the way for the final judicial endorsement of Rite Aid’s bankruptcy restructuring by April 22.
While Rite Aid denies and rebuffs any misconduct in the opioid-related allegations, it is ironing out settlement terms within the reorganization framework, including a pact poised to conclude a probe by the U.S. Department of Justice into the company’s opioid distribution practices.
Initiated in October amidst a $3.3 billion debt challenge, the Pennsylvania-based chain has shuttered many stores already.
The updated bankruptcy blueprint, green-lighted recently, proposes a $2 billion debt reduction and allocates approximately $47.5 million to subordinate creditors, among them individuals and local governments embroiled in litigation against Rite Aid over its opioid handling.
During a judicial session in Trenton, New Jersey, U.S. Bankruptcy Judge Michael Kaplan endorsed Rite Aid’s voting scheme, emphasizing the urgency of progressing with the bankruptcy proceedings to sidestep escalating costs that might force the company into liquidation.
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