Hair Cuttery Blames Missed Pay on Virus, Files for Bankruptcy

The owners of Hair Cuttery and other salon chains say the Covid-19 pandemic forced them to withhold more than $3 million in wages, bonuses, and benefits earned by its employees the week before its stores shut down, according to new bankruptcy filings.

Creative Hairdressers Inc. and Ratner Cos. sought court approval to pay all employees those wages and continue their benefits, in a motion accompanying the petition filed Thursday in the U.S. Bankruptcy Court for the District of Maryland.

The companies expect the court to grant the request, which would “pay all employees 100% of the missed back pay,” Joel ...