PHILADELPHIA (WPVI) — Foreman Mills will be acquired by New York-based Shoppers World, the company Action News confirmed Thursday afternoon.
Forman Mills CEO says all employees are back to work and will be paid for the two weeks they were unable to work. The new information is a relief for both employees and customers.
Asia Armstrong moved from South Jersey three years ago but flies back from Florida to buy clothes for her children.
“I currently live in Naples, Florida but only fly here for the good deals,” she said.
So the news that Forman Mills has found a buyer in Shoppers World is a huge relief. The buyer is also reopening a location at 48th and Market in Philadelphia.
“You just can’t miss out on the good deals. I love it so much,” Armstrong said.
The employees should also breathe a sigh of relief. Action News reported Wednesday that the retail chain could shed 245 Commonwealth jobs, according to the Pennsylvania Department of Labor and Industry.
The chain had already laid off 119 company employees at its headquarters in Pennsauken, New Jersey. These workers last week filed a class-action lawsuit over unpaid wages and more.
“The allegations in the complaint indicate that the employer manifestly disregarded its obligations under the law and to these employees,” said Franklin J. Rooks, Jr. of Morgan Rooks, PC
If a company with at least a hundred employees lays off 50 or more employees, federal law requires 60 days’ notice and continuation of benefits during those 60 days. A notice period of 60 days is also required in Pennsylvania. Beginning in April, New Jersey takes 90 days.
“You were informed on June 6,” Rooks said. “This day would be her last day.”
The class action lawsuit also alleges that employees of the Pennsauken, NJ company were not offered a severance package as required by New Jersey law. That’s one week’s wages for each year the employee has worked for the company.
“An email was sent to the staff specifically stating that they would not receive severance pay,” he said.
This attorney says news of the acquisition doesn’t change the status of the lawsuit he’s filed. We asked Forman Mills about this and the company did not respond.
But here, too, it shows us that all the employees who have been laid off have their jobs back and are being paid.