Ex-employees file class action lawsuit against Pirch, claiming illegal layoffs
They allege the company violated state and federal laws
Former employees of Pirch, the high-end kitchen furnishing store that filed for bankruptcy last month, have filed a class-action lawsuit against the retailer.
In the lawsuit, filed Wednesday, former Pirch worker Liza Rogers and others in the class allege that Pirch failed to follow state and federal laws when it laid them off abruptly several weeks ago.
Pirch did not respond to a request for comment.
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The class has not been certified yet.
Specifically, employees say Pirch failed to follow the Worker Adjustment and Retraining Notification (WARN) Act.
They are suing for 60 days’ pay and benefits, and attorneys’ fees.
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“The Defendant violated the WARN Acts by failing to give the Plaintiff and other similarly situated employees of the Defendant at least 60 days’ advance written notice of termination, as required by the WARN Act,” the lawsuit states.
The complaint also says that Rogers and about 150 other employees were terminated on or around April 9 as part of a mass layoff.
Pirch could also be liable for a civil penalty of up to $500 a day for each day it violates California labor code, the complaint states.
On April 19, Pirch filed for Chapter 7 bankruptcy.
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In the bankruptcy filing, Pirch stated that its liabilities far surpass its assets, which implies that not all creditors will be repaid, and some or all will not receive the entirety of what is allegedly owed.
According to the lawsuit, in a WARN Act claim, each class member gets priority for the first $15,150 of what is owed under U.S. bankruptcy code. Amounts owed beyond that are considered lower priority.
Rogers, in an email interview with The San Diego Union-Tribune, shared how she was impacted by the abruptness of the layoff.
“This lay off was unexpected, and had we all known about it sooner and given our 60 days notice via the WARN NOTICE, it would definitely be more palatable,” Rogers wrote. “Because there was no time to find other employment, it’s a huge amount of stress, to say the least.”
She said she has had to tap savings, incurring penalties.
The sudden job change has left her asking difficult questions, she added.
“Do I work for myself? Do I find another employer? Do I sell my house and move out of this state or country?” she wrote.
This is the latest of multiple lawsuits that have been filed against the luxury furniture and bath appliance retailer.
Customers have also asked for criminal inquiries into the company, and Rogers filed a complaint with the state regarding the alleged WARN Act violation.
In late March, Pirch closed the doors to all of its retail locations, giving the public — and stakeholders such as customers, merchants and landlords — no explanation.
Since then, it has filed several WARN notices: one round in early April and a second round that was processed April 30 for Pirch locations in San Diego, Los Angeles and Riverside counties.
Before it closed, Pirch had stores throughout Southern California, and was planning on opening a showroom in Santa Monica.
Staff writers Lori Weisberg and Natallie Rocha contributed to this report.
This story originally appeared in San Diego Union-Tribune.