InkStop Stores Dry Up, Owing Workers Pay and Health Care

[Omaha Steve]

http://www.jwjblog.org/2009/11/inkstop-stores-dry-up-owing-workers-pay-an-health-care/

By Debbie Kline, on November 3rd, 2009

Debbie Kline is Coordinator of Cleveland Jobs with Justice.

Cleveland InkstopUnless you are a real news junkie and read the Business Section of your local newspaper or know one of the former employees, this is one story you may have missed.

InkStop was a chain of 152 convenience stores for office supplies that stocked ink cartridges and small electronics. The stores were located in small plazas in communities where big box office supply stores did not exist. InkStop owner Dirk Kettlewell boasted that the chain would be profitable by the end of this year by using over $80 million from private investors. This was supposed to be the “Sleeping Beauty” business story of the decade, but instead it turned into something that rivals “Psycho.”



The first blow came when all 152 InkStop stores were closed without warning on October 1st. It was business as usual earlier in the day. As the doors were locked for the night, the devastating news came via a faxed and emailed letter to employees to tell them: No more jobs and no pay for the last three weeks of work. This news was accompanied by a plea for patience “during this trying time.”

Even though the managers had keys to the stores, many of the security codes were changed during the dark of night. Employees could not get back in to the stores to collect personal belongings. Some still have items locked away in stores that are silent, or in stores that have been chained by landlords who have not received their rent for at least a couple of months.

The second blow came when a letter told them their health care insurance had not been paid for their last month of employment. This same letter also told them they would be ineligible for continuing health coverage under COBRA – remember they had not paid the insurance bill. This in itself was a double whammy because if the company had at least kept the health care premiums current the employees would have been able to receive continuing health coverage at the newly reduced rate.

FULL story at link.