Borders, in bankruptcy, seeks six-figure payouts for executives
Borders bookstores are closing their doors forever around the country while Borders Group Inc. seeks six-figure payouts for the company's former chief executive and other top management. By the time the stores' closure is complete, more than 10,000 Borders employees will have lost their jobs.
On the same day Borders Group Inc.’s rank-and-file employees sued over not receiving proper notice of their terminations, the failed bookseller asked to make six-figure payments to its former top executives, including Chief Executive Mike Edwards.
Borders’s bankruptcy estate sought permission late last week to make $125,000 severance payments each to Edwards, former Chief Financial Officer Scott Henry and two other senior managers.
The request came just hours after Jared Pinsker, a former employee at the company’s Ann Arbor, Mich., headquarters, filed a class-action lawsuit on behalf of other Borders saying the retailer violated the federal Worker Adjustment and Retraining Notification (WARN) Act by not giving employees 60 days’ notice that they’d be laid off.
Pinsker is asking that the company pay two months worth of wages to him and others like him.
Incidentally, the four executives are each receiving at least two months’ salary.
Borders stores that have not yet closed are being liquidated.
-- Carolyn Kellogg
Photo: A Borders bookstore in New York. Credit: Bloomberg