Description: This is a bit of good news in what has been a week of bad news for Goodwill Industries of Toronto, Eastern, Central and Northern Ontario. Last Sunday when employees arrived for work, they found the doors were locked. The organization is experiencing cash flow problems and employees were wondering if they would be paid outstanding wages estimated at over $500,000. But an announcement on Friday indicated that the organization had obtained the financing to enable it to meet payroll obligations, providing some sense of relief for the affected employees.
Date: January 22, 2016
1) Have you ever lost wages in a bankruptcy or similar financial crisis for an employer you worked for? Does the law provide any protections for wage earners in these situations?
2) If you are thinking about a career as an accountant, what would you think about specializing as a trustee in bankruptcy?
3) What are some options for organizations like Goodwill that are facing a cash-flow crisis like this?