A bankruptcy court unfroze Shane Co. funds Thursday to pay employees whose payroll checks did not clear this week after the company filed for Chapter 11 bankruptcy.
Seventeen percent of employees were affected after Shane Co.’s bankruptcy protection filing effectively froze the company’s bank accounts, executives said.
“Our account had millions of dollars in excess of what was required to cover all paychecks, and I was assured that our payroll account would not have any interruptions,” CEO Tom Shane said in a statement.
Affected employees have been assured that as soon as the court releases the funds, they will be paid and all bank fees they may have incurred also will be paid.
Price Blanchard, executive vice president at Shane Co., said direct-deposit users and those who deposited or cashed checks last week weren’t affected.
