BREA (CBSLA.com) — Hundreds of PennySaver employees were told Friday they were out of a job — and without any notice.
The newspaper told workers they were shutting their doors after 50 years.
CBS2’s Adrianna Weingold spoke to the very disappointed workers.
The company hired security Friday evening to keep employees off the property.
The sign says it all: “Sorry folks, we are no longer in business”.
After more than 50 years helping consumers find the very best deals, the PennySaver is gone.
“I’ve been with the company for over 30 years and everything is a complete shock. We had no idea the company was going to shutdown, we worked all week long,” said Luann Benton.
Employees say they were given no notice, some were escorted out of the Brea facility abruptly on Friday afternoon.
“It’s really against the law to shut us down like this, they’re supposed to give you a notice let you know about your insurance, your COBRA, you’re supposed to get a last check. We haven’t heard anything,” said Anita Steinle.
Outside the building, big rigs filled with the familiar mailings aren’t being allowed to deliver their load to its home base distributor. Fisher Printing is one of the local companies who until yesterday worked with PennySaver USA.
“We have delivery truck drivers who take our product to them and they said they were basically carrying boxes out in tears,” said Byron Holeman, a pre-press manager with Fisher.
Employees Weingold spoke with say even the vice president of sales was blindsided. They say he sent out an email saying he got a call from the CEO Ron Myers just moments before the door were closed, saying they were shutting down, and no books will go out next week. He went on to say “I had no idea or had any previous knowledge…nor do I really know what happened.”
A sentiment echoed by frustrated employees, many sales representatives who say they just finished the Memorial Day publication, one of their biggest weeks get for sales, now they’re waiting and hoping they get paid.
“It’s sad, it’s really sad, you’ve worked here for 30 years and it’s like, for what? You get nothing,” said Benton.
PennySaver USA is owned by Open Gate capital. They were acquired about a year and a half ago. No one from PennySaver returned Weingold’s calls for comment.
KCAL9’s Jasmine Viel said the workers are protected under something the Department of Labor calls the Worker Adjustment and Retraining Act (also known as WARN).
Companies with more than 100 employees are to give workers notification of 60 calendar days before plant closures of mass layoffs although some allowances are made for unforeseeable business circumstances.
The company’s vice president of sales, Brian Walker, told Viel he felt blindsided by the closure.