Quite often we report on businesses that have either completely liquidated, or those that have filed for a reorganization bankruptcy. And while a good number of those bankruptcies reflect the hard economic environment many business owners are now faced with, this same environment also tends to impact those workers employed by bankrupt businesses who find themselves in debt after being laid off.
Recently the solar energy company Evergreen Solar announced that it had filed for Chapter 11 bankruptcy, and plans to let approximately 65 workers go, including those that work at one facility where all operations will be suspended.
And, while 65 people losing their jobs is tough enough for many, this news also came after the company announced in January that a solar panel factory would be closing and 800 jobs would be eliminated.
According to sources, when looking at why the company has had to close down multiple locations, let workers go and file for Chapter 11 bankruptcy, the company cites two reasons: cheaper costs for labor at a manufacturing plant that is owned by Evergreen Solar in China, and the economic downturn.
And while a recent article in Bloomberg reported that the company plans on selling itself in order to pay back the $485.6 million that is owed to creditors, for many of those workers who have been laid off or will be laid off in the future, they too may end up seeking debt relief to deal with not having a job in an economy where it is not always the easiest to find new employment opportunities.
Source: The Washington Post, “Mass.-based Evergreen Solar files for Chapter 11 bankruptcy, plans to cut workforce,” Aug. 15, 2011