Business & Tech

Bob’s Stores Laying Off Nearly 150 Employees In Meriden

The company's CEO said the bank is refusing to provide funding for payroll, benefits and other "critical financial obligations."

MERIDEN, CT — The parent company of Bob’s Stores and Eastern Mountain Stores notified state and local officials this week that it is laying off nearly 150 employees at its headquarters in Meriden due to unforeseen “business circumstances.”

In a WARN notice sent to the Connecticut Department of Labor and Meriden Mayor Kevin Scarpati, Bob’s Stores President and CEO David Barton said the company will be “conducting a reduction in force” at its offices and warehouse at 160 Corporate Court in Meriden.

Employees at that location will be laid off, along with remote employees who report to that location, according to the letter.

Find out what's happening in Meridenfor free with the latest updates from Patch.

Barton said unless the company is able to secure “alternate funding,” the layoffs will begin on May 31, and employees should expect to be laid off on that date or during the 14-day period beginning on that date.

The layoffs will be permanent, according to Barton.

Find out what's happening in Meridenfor free with the latest updates from Patch.

The affected employees are not represented by a union, and “bumping rights” do not exist, according to Barton.

“We are taking this action because of business circumstances that were not reasonably foreseeable,” Barton wrote in the letter. “We would like to have given you more notice of this action but were unable to do so because the bank has informed us within the last week that it will refuse to fund the employee health insurance premiums, 401K administration, payroll, as well as other critical financial obligations which, if not paid, will likely prevent us from being able to operate the business going forward. As of this date, they remain firm on their position despite our continuing best efforts to convince them otherwise.

"Unfortunately, the circumstances leading to this layoff were not reasonably foreseeable at an earlier date. We are currently seeking alternative funding sources, but we cannot guarantee a favorable outcome.”

Scarpati said he has been in contact with Barton, city Economic Development Director Joe Fest, state Department of Labor Commissioner Danté Bartolomeo, along with other city staff and City Council members.

"My priority is, first, to offer any assistance possible to their potential alternate funding sources to help them sustain their business operations and retain their employees," Scarpati said in a statement. "Simultaneously, we want to ensure assistance is offered to any and all employees that may be impacted by these potential layoffs. The CT Department of Labor is offering services through their Rapid Response Unit, working directly with Bob's Stores and Eastern Mountain Sports and their employees.

"Bob's Stores and Eastern Mountain Sports has been a part of the Meriden community for decades and we value their partnership and the support of their employees. We greatly appreciate their efforts in being a strong corporate citizen over the years and I am hopeful we can continue a partnership beyond the tentative layoff date of May 31, 2024."

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