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Some Shane Co. Paychecks Bounce After Layoffs

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Jan 14, 2009 8:34 pm US/Mountain

Some Shane Co. Paychecks Bounce After Layoffs

DENVER (CBS4) ― It was like rubbing salt in the wound. First he lost his job, then Kyle Hain's final paycheck bounced -- and he's not alone. A lot of employees laid off by Shane Co. ran into the same problem.

The jeweler has filed for Chapter 11 bankruptcy protection and is having to cut staff.

Shane Co. has laid off 80 employees company-wide in the past month. That's about 13 percent of the total staff. It's been around three generations and has stores in 14 states.

On Monday the company filed for bankruptcy protection and many of those who tried to deposit or cash their final check found they could not.

"They called me into the office along with the assistant manager, who had been there at least five years, and said that due to the bad economy that they had to make some difficult choices and that as of right then, immediately, we were being let go," Hain said.

His final paycheck bounced. Between the time he received it and could cash it, the company filed bankruptcy and its accounts were frozen.

"The thing that makes me most disappointed in them is that they would give him a check, his last check, that was a rubber check," said Christine, Hain's wife.

Shane Co.'s slogan has been "Now You Have a Friend in the Diamond Business."

"I don't know if I'd call them a friend at this point," Hain said. "If they were a little more up front with how they treated us, the people that were let go, and were a little more truthful, I think that would go a long way."

Hain is now planning on moving his family out of their home and into an apartment. He wants to go into business on his own as a jewelry appraiser.

Shane Co. plans to keep operating.

Chief Executive Officer Tom Shane, his lawyers and creditors, were in bankruptcy court Wednesday afternoon. Employee pay was among the matters on the table.

A spokesman for the company said they did not anticipate that the bankruptcy court would freeze their accounts and they are very embarrassed.

(© MMIX CBS Television Stations, Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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