Advertising newsletter PennySaver shuts down; hundreds lose their jobs

[Liberal_in_LA]

Employees said they were told late Friday that the company was ceasing operations immediately, without warning or further explanation.

“They said, ‘That’s it. We’re done. We’re closing. Everybody pack up your things and leave,'” said one employee, who asked that her name not be published because she was unauthorized by the company to talk to the news media.

The Brea company employed hundreds of people and circulated by mail throughout Southern California.

Employees said they were not given their final paychecks and were not told how to extend their healthcare coverage.

PennySaver Chief Executive Ronald Myers said in a statement Sunday that the company was forced to shut down after its lender “unexpectedly ceased our funding.”
http://www.latimes.com/business/la-fi-pennysaver-suddenly-shuts-down-hundreds-lose-jobs-20150524-story.html#navtype=outfit

[yeoman6987]

1. Hard to stay open with zero money

Hopefully they will find a lender on Tuesday. It is a shame but possibly not the end.

[SoapBox]

2. Whoa!

What a shock...I always clip a couple of coupons out of it every week.

This is just a damn shame.

[libdem4life]

3. This was the original Craig's List. We bought everything from that. Time marches on.

[KamaAina]

4. That explains why I didn't get mine this week.

They were in the Bay Area, too. Of course, none of the advertisers were anywhere near me, so I just recycled it.

[JayhawkSD]

5. Illustrates a problem with today's economic model.

That a business requires a lender to maintain day-to-day operations.

If a business cannot pay operational expenses, such as payroll, from its revenue then it is a failing business which should not be worthy of a loan. And yet, here we are, maintaining an economic model in which businesses routinely operate on credit because they cannot pay their regular bills without borrowing. Presumably because they sell to customers who do not pay their bills.

[antiquie]

6. What happened to the WARN Act?

Employees may not be entitled to jobs, but they are entitled to notice.

[SoapBox]

7. Ours always came on Tuesday...

With all the grocery ads stuffed in it...noticed yesterday, no ads.

I wonder how all that is going to work out.