Expert: Christine Janklow - 4/3/2011

Question
I work at Sbarro, which is in line to file Chapter 11 most likely this week.

The company has defaulted our payments since 2007, and even though we've worked within the system to get a much lower annual payment (which the former pres said to be 40 million) we are still missing that amount annually ( this year said to be $37 million)

The company has lied to us various times about changes etc and didm't co,e clean about bankruptcy until it hit the news thursday. We all know that we are in trouble but they have made it seem that we were back on track in 2010!

My actual question is:

My store ( & many others) actually profit a negative each year! My store makes money at the store level and I ve been up for the last year in sales, but by the time my profits pay the higher ups, my store goes about $20k negative each year!

I also make $15k more than the store manager for my unit is supposed to make! There are NO STORES within 50 miles that could afford my salary!

*dealing with chapter 11, is it likely that my job or my store are on the chopping block? (VA is a right to work state/at will)

*the higher ups have never impressed me with how they run the business or make good profitable choices, which is why I am one of a few that hit sales/profit

- does this make it likely that Sbarro just won't figure this out?

-----I basically want to know if I should start looking for a new job?? I lkke the job and don't mind staying til the end, but with all the dishonesty and mixed comments, and now making the news.... Not sure what to believe and don't wanna be left jobless.


Thanks in advance

Answer
Mike:
Thank you for the inquiry. Firstly, I regret that your organization has suffered economic losses. You first should educate yourself to what the Chapter 11 process is and is set up to do, which is reduce debt and reorganize the organization so it can emerge profitable again. Most of the time, this involves hiring and firing typically of high level executives (usually responsible for the losses) and sometimes liquidation of non-performing parts of the company. If your store is profitable and can be maintained without adjustment they may not choose to close it. So the answer you seek really must come from the days and weeks ahead and what your organizations leadership/trustees will mandate to make the appropriate cuts. My suggestion, prepare yourself for the inevitable change, keep your savings up, do your job to the best of your ability, but make no assumptions as to termination of your position. Knowledge and preparation are power. Best of luck.

Respectfully,

Christine Janklow