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SALT LAKE CITY — There are already a lot of pressures that come with starting a new family, while going to school, but Kameron and Taylor McCurdy say they didn’t need the added stress of suddenly losing their revenue.
Simply Mac has sent a notice to all of its employees saying it is unable to do payroll in the future. Employees say there were signs things weren’t going well, but this announcement came without warning.
“We don’t know exactly what the future holds,” Kameron said. “Bankruptcy doesn’t really look like that, you wake up at 6am and decide to shut down your whole business, you know it’s nationwide.”
But Kameron says that’s at least how it seemed to be, as they got no warning, just an email and a call from his store manager Orem.
“Everyone is fired, he was kinda freaking out on the phone,” Kameron said.
Add to that the fact that Kameron now owes about two weeks’ salary.
“As a family, you know I’m a stay-at-home mom, and so I rely on him to go to work every day to bring some money home so we can afford groceries and we can we afford to pay our bills.”
And chances are they’ll never see that last paycheck.
Dane Hines, a bankruptcy attorney in Provo, said in a Chapter Seven liquidation like the one Simply Mac says they will file to get creditors paid first. Employee salaries are usually a fourth level priority.
“That would be surprising,” Hines said of the employees’ chances of getting their final salary. “The smaller the business, the less likely it is that there will be assets that are not fully encumbered.”
But Hines says it’s still worth filing that claim just in case. In the meantime, the McCurdys say they are lucky to have help from their family and will start looking for what they can sell.
“I wish they had just told their employees ahead of time and had been honest with everyone,” Taylor said.
In this letter to employees, Simply Mac’s CEO says the pandemic has hit them hard and despite over $5 million in PPP loans, they were never able to recover, forcing a Chapter 7 bankruptcy.
They have over 50 stores across the United States, including several in Utah.