Shop-Vac, ex-employee seek judge’s approval of WARN Act suit settlement

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Shop-Vac, ex-employee seek judge’s approval of WARN Act suit settlement
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GreatStar Tools that bought the company's assets and also is a defendant, does not concur with the request.

WILLIAMSPORT – The former employee who accused Shop-Vac Corp. of violating the Worker Adjustment and Retraining Notification Act has reached a settlement with the company.

Approximately 425 workers were phased out when the family-owned Shop-Vac ceased operations in Williamsport on Sept. 15, 2020. “In addition, it has a senior secured bank loan which renders it insolvent, and because it has sold substantially all its assets, it has no way of ever returning to solvency.SV Wind-Down and Gair urge Brann to approve their motion for those reasons. GreatStar has not asserted any crossclaims against Shop-Vac, they note.

Shop-Vac USA president Gary DuBoff said the reorganization is taking place to address the business and inflationary headwinds faced by the company as the result of changing global and economic conditions.

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