Ohio Ink Seller Files Chapter 7
The outlook is bleak for hundreds of employees owed paychecks by Ohio ink and toner retailer InkStop.
Operating 120 stores, the company recently decided to file Chapter 7 bankruptcy. But this filing is leaving more than just creditors and landlords asking for money. From a report in the Cleveland Plain Dealer:
InkStop owes $1.1 million in wages, vacation pay and expense reimbursements to employees, including $63,804.17 owed to CEO and co-founder Dirk Kettlewell.
On Oct 1., InkStop laid off 456 employees. Those employees were told the company didn’t have the cash needed to issue their final paychecks, and had not paid their health care premiums for the previous month, reported the Plain Dealer.
In all, InkStop owes more than $48 million to more than 1,000 creditors, many of them landlords owed back rent at store locations.
There are also several lawsuits involved in the case, including one on behalf of more than 200 employees trying to get money owed to them for past work.