To All Kiddie Kandids Employees:
In an abrupt and unforeseen turn of events, Kiddie Kandids’ lenders have informed management that they will no longer fund our operations. Without continued funding, Kiddie Kandids is unable to meet its financial obligations, including its payroll. As a result, it is my unfortunate duty to inform you that, effective immediately, Kiddie Kandids must completely cease operations and relieve all employees of their positions with the company.
In the coming days, Kiddie Kandids will file Chapter 7 bankruptcy, and all decisions will then be made by a trustee appointed by the Trustee’s Office of the Federal Bankruptcy Court in Salt Lake City. Between now and then, the company will work to maximize the Chapter 7 trustee’s capability to pursue a sale to another photography studio company that could possibly restart operations, but we have no control over these events, and can not assure you that any operations will be restarted.
We realize that this sudden and deeply unfortunate news will cause great concern to you and your families, and you have many questions. We will not have the capacity to answer each of your individual questions, but please keep this in mind: because of the unforeseen termination of funding by the lenders, there is no money to pay payroll (both past and future), there is no money to reimburse expenses, and there is no money to pay our suppliers.
In regards to health insurance, we regret to inform you there is no money to pay health related bills from the company’s self-insured plan, thus you do not have health insurance. There are no COBRA programs available from defunct plans such as ours either.
Subject to your particular state laws and your employment status, you are likely to be eligible for unemployment benefits, and we would encourage you to take this letter with you to the local unemployment office.
We will attempt to setup a blog at http://kiddiekandidsinfo.blogspot.com where management or the trustee can communicate future developments. If possible, we encourage you to consult the site for additional information as it becomes available.
I deeply regret that these unfortunate events have necessitated Kiddie Kandids’ closure. I thank you each for your loyal service.
Sincerely,
Dale Merrill
President, Kiddie Kandids