A nondebtor affiliate of Tweeter, the bankrupt electronics retailer, is liable with the debtor under the WARN Act to employees terminated just prior to Tweeter’s bankruptcy filing with same-day notice, the Delaware Bankruptcy Court held in an opinion dated July 8.
In the 24-page opinion issued in an adversary proceeding in the In re Tweeter Opco LLC Chapter 7 cases, Judge Mary F. Walrath further held that the nondebtor affiliate, Schultze Asset Management LLC (SAM), was not entitled to the benefit of the faltering business exception or the good faith defense.
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