Christmas Tree Shops LLC is facing a lawsuit alleging that the the bankrupt discount retailer failed to give a timely notice about layoffs.
The proposed class action, filed by a New Jersey-based employee on behalf of others similarly situated employees, said Christmas Tree Shops’ termination of 50 employees’ jobs earlier this month without an advanced notification violated the Worker Adjustment and Retraining Notification Act (WARN Act).
The plaintiff is seeking 60 days’ of wages and benefits, under the WARN Act. The lawsuit also asked for severance pay equivalent to one week of pay for each full year of employment, plus an additional four weeks of severance.
The company filed for Chapter 11 in May but decided to close its business after its lenders withdrew funding after dwindling sales. The company had about 3,600 full and part-time employees when it filed for bankruptcy, according to court filings.
The company’s representatives didn’t immediately respond to a request for comment.
This case is Christmas Tree Shops, LLC, Bankr. D. Del., No. 1:23-bk-10576, 7/19/23.
To contact the reporter on this story:
To contact the editor responsible for this story:
Learn more about Bloomberg Law or Log In to keep reading:
Learn About Bloomberg Law
AI-powered legal analytics, workflow tools and premium legal & business news.
Already a subscriber?
Log in to keep reading or access research tools.