AUBURN – Rave, a young women’s clothing store that’s been a fixture at the Auburn Mall for about 20 years, is likely closing, possibly as soon as next week.
Owned by bankrupt G+G Retail Inc., the store employs six people. One, Eleanor Gagnon, an assistant manager, said Wednesday that employees were initially told they’d have their jobs until March.
Now, she says, the closing could happen as soon as Valentine’s Day. That’s if employees stay.
Gagnon said Rave and G+G Retail canceled workers’ benefits about three weeks ago. She said she lost a week’s vacation pay, her health-insurance coverage and comp time.
And, said Gagnon, one of her paychecks bounced. A replacement check arrived Wednesday, but Gagnon said she hadn’t attempted to cash it yet.
She said her corporate district manager, Kristen Cherone, has asked employees to remain loyal and stay with the store until it closes.
Cherone didn’t return a message left on her answering device. Chuck Nuoni, who’s heading up the bankruptcy transition for G+G, said the bounced checks were unfortunate.
He said that as part of the bankruptcy proceeding the court froze G+G’s bank accounts. It has since freed up the payroll account and new checks have been issued.
Nuoni said Rave employees who were hit with bad check fees will be reimbursed if they file for fee repayment. He also said there’s a mechanism in place for people such as Gagnon to file a claim for lost benefits, such as vacation pay.
A trade Web site, fibre2fashion.com, said the specialty retail clothing company Wet Seal has agreed to buy substantially all of the assets of G+G as part of the latter’s Chapter 11 proceedings.
Wet Seal offered $15.2 million for the assets.
G+G operates 566 stores in the United States and Puerto Rico under the Rave, Rave Girl and G+G names. It said it hoped to keep about 450 of those stores as it goes through the Chapter 11 process.
Wet Seal has 402 stores in 43 states under the Wet Seal and Arden B. store names.
Nuoni said Wet Seal’s offer is the first of several expected via the bankruptcy proceedings. An auction of G+G holdings is set for Valentine’s Day, Feb. 14. The winning bidder will decide which stores are to be closed and when, Nuoni said.
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