Did CPI Corp. Violate The Warn Act When It Closed Suddenly And Laid Off Over 4,000 Employees?

Apr 09, 2013, 16:24 ET from Klehr Harrison Harvey Branzburg, LLP

PHILADELPHIA, April 9, 2013 /PRNewswire/ -- CPI Corp. may have violated the Worker Adjustment and Retraining Notification Act ("WARN Act"), when it closed without notice and laid off over 4,000 employees. The St. Louis-based operator of portrait studios inside major retail stores (Sears, Walmart and Toys R' Us) has been struggling financially for sometime and defaulted on loans with its lenders recently. 

Charles A. Ercole, a partner with the law firm of Klehr Harrison Harvey Branzburg LLP said, "We are investigating the facts behind the decision not to notify these employees at least sixty (60) days in advance of the shutdown.  It certainly appears that CPI violated the WARN Act because clearly CPI had sufficient time and knowledge to give 60 days notice of the layoff to employees as well as state and local officials."  Damages for failing to comply with the WARN Act include 60 days wages and fringe benefits for each employee.  

Mr. Ercole has litigated numerous WARN Act cases in various industries throughout the United States.       Mr. Ercole is Chair of the labor and employment practice at Klehr Harrison which is a full service law firm located in Philadelphia, Pennsylvania. If you have any questions, please contact Charles A. Ercole at the address below.

Charles A. Ercole, Esquire
Klehr Harrison Harvey Branzburg LLP
1835 Market Street - Suite 1400
Philadelphia, PA 19103


SOURCE Klehr Harrison Harvey Branzburg, LLP