updated
Wednesday, 10:16 AM
From the Boston Globe Business Team

Tweeter mails out employee checks

December 5, 2008 01:45 PM Email| Comments (6)| Text size +

tweeter1205.jpg
(File photo: Josh Reynolds for The Boston Globe.)

The owners of Tweeter, the bankrupt consumer-electronics chain, said they have mailed out unpaid wages - but not vacation time owed - to roughly 600 employees who were abruptly fired this week just days before the business was set to close for good.

Liquidators running a going-out-of-business sale for the Canton-based company have also recovered most of their fees, totaling over $1 million.

(Meanwhile, in a related development, Tweeter received approval today from the US Bankruptcy Court in Delaware to liquidate under Chapter 7, according to court documents.)

The group of businesses, including local companies Hudson Capital Partners of Newton and Tiger Capital Group of Boston, are asking the bankruptcy court to reopen the stores so customers who have already paid for merchandise can come and pick up their goods.

It is still unclear whether the liquidators will pay employees bonuses that were promised as part of the going-out-of-business sale.

The owners of Tweeter, Schultze Asset Management, shut down Tweeter and filed for Chapter 7 bankruptcy protection on Tuesday after paying millions of dollars to Wells Fargo, the largest secured creditor.

Schultze, a New York investment firm that had also loaned money to Tweeter, was the second-biggest creditor and decided against putting additional money into the company to wind down the operations. Tweeter had planned to close its shops on Sunday.

On Wednesday, hackers apparently broke into Tweeter's website and posted a picture of President Bush on the home page with a message about Schultze and the chief restructuring officer: "Don't trust either of them."

The website was taken down shortly after and has not functioned since Wednesday.
(By Jenn Abelson, Globe staff)

6 comments so far...
  1. If your business model is selling Plasma TV's for $6,000 that are available at Best Buy for $1,499 and Wal Mart for $999, you will have competitive challenges in this environment,

    Posted by Lee Walton December 5, 08 04:48 PM
  1. as an ex-tweeter employee and owed 52 hours of "earned" vacation time I am disgusted with the way Schultze has handled this. We were told as the company was switching over to liquidation that we needed to keep pushing forward with selling things off and working as we had been, but nobody would give a 100% straight answer on payment of vacation time owed. Their were suggestions made that nobody should be taking vacation time and we would more than likely be paid for it in the end. Well it looks like it was yet another farce on their part like pretty much everything else they ever told us.

    Posted by Just another screwed employee December 6, 08 03:58 PM
  1. Getting paid for the last week was a start ,but what about our vacation money? We were told not to worry about our vacations, they would all be paid to us. What about the health insurance, there is no one around to answer questions. If you call united Health they are in the dark about this whole matter, you have to call every day to see if you are covered. The bonus money from the liquidators was something the managers worked hard for and now we may not receive what was again promised to us. I wish I never heard the name Tweeter, their people drove sound Advice into the ground

    Posted by JOE December 9, 08 10:01 AM
  1. Call the Masachusetts State House - accrued and un-used vacation time has to be paid out by law in Massachusetts.

    Posted by HR December 11, 08 10:00 PM
  1. As an Ex-Employee I thought Tweeter would make it through the New Year; When we shut down all of our distribution centers I knew we were closing within weeks. Thats when all the lies began to trickle down from Corporate in an obvious attempt to keep the store level employees in check. Tweeter robbed its Customer's of thier hard earned money and also did not deliver thier paid for product by intent; Tweeter was fortunate it had loyal employees otherwise there would have been no product to liqudate.

    Posted by I should've left last year December 14, 08 09:39 PM
  1. I worked for Tweeter for 5 years, and left about 4 years ago, and even then there were signs that the business was going downhill. We used to use the old clunky manual credit card machines to process sales. Can you imagine? You pat $10,000 for a top of the line home theater system and your salesman pulls out that? They thought they could compete with Best Buy, CC and Walmart in the price game and failed miserably. I tell ya, I would love to have some of the stuff those guys were smoking. At least they trained the employees well so they (hopefully) can find similar jobs. R.I.P Tweeter, you did it to yourself.

    Posted by Glad I left when I did. December 17, 08 12:48 PM
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