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A former franchise employee is owed almost $25 million by his now-bankrupt former employer.
It is always a good idea to collect all your wages right away, a New Yorker has discovered.
While working for a franchisee in Texas, employee Alex Rodriguez agreed to defer some of his wages. Unfortunately his former employer has filed for Chapter 11 bankruptcy, and now the former employee may be out of luck.
After leaving Texas, the man moved to New York and he is now employed by a different franchisee in the same industry. Since his claim of $24.9 million is the largest unsecured claim, the former employee has now been given a seat on the unsecured creditors' committee.
According to the NY Post, the Texas franchisor is claiming that all creditors will be paid in full. It is not uncommon for franchisees to declare bankruptcy, and often employees are owed money.
Fortunately for Mr. Rodriguez, he is believed to have some savings to fall back on and is being well-paid in his current job.