USA: DavidsTea workers fighting for unpaid wages after the company files for insolvency
"Burnaby workers still fighting for lost pay after tea company filed for insolvency", 17 June 2021
DavidsTea Inc. has taken a step toward exiting insolvency after the Quebec Superior Court approved its plan to pay creditors $18 million.
But where that leaves Burnaby workers who lost their jobs is unclear. DavidsTea operated three stores in Burnaby...shopping malls before the company decided to permanently shut down most of its brick-and-mortar stores in order to focus more on e-commerce...A worker at the Metropolis store previously told the NOW that they were fighting with the company to recover lost wages from the closure.
DavidsTea faced $118.2 million of claims from more than 1,500 creditors, with 60 per cent originating in Canada. The claims include $3.9 million from Canadian employees...
Now just $18 million will be paid to those creditors, but it’s unclear if Burnaby workers who lost their jobs when the stores closed will receive compensation...
CEO Sarah Segal says the insolvent retailer would emerge from creditor protection a "radically different organization" with a digital-first strategy after exiting its entire retail network except 18 Canadian stores while also supplying more than 2,500 grocery stores and pharmacies...