Shoppers World acquires Forman Mills, saves jobs: CEO

PHILADELPHIA (WPVI) -- Foreman Mills is being acquired by New York-based Shoppers World, the company confirmed to Action News on Thursday afternoon.

The CEO of Forman Mills says all employees are working again and they will get paid for the two weeks they were off the job. The new information is a relief to both employees and customers.

Asia Armstrong moved from South Jersey three years ago but flies back from Florida to buy clothes for her kids.

"I currently live in Naples, Florida but I fly out here just because of the good deals they have," she said.

So news that Forman Mills has found a buyer in Shoppers World comes as a huge relief. The buyer also re-opening a location at 48th and Market in Philadelphia.

"You just can't pass up the good deals. I love it so much," said Armstrong.

Employees must also be breathing a sigh of relief. Action News reported Wednesday that according to the Pennsylvania Department of Labor and Industry, the retail chain could be cutting 245 jobs in the Commonwealth.

The chain had already laid off 119 corporate employees at its headquarters in Pennsauken, New Jersey. Those workers filed a class action lawsuit last week for unpaid wages and more.

"Allegations in the complaint indicate that the employer had a blatant disregard for their obligations under the law and to these employees," said Franklin J. Rooks, Jr. of Morgan Rooks, P.C.

If a company with at least one hundred employees lays off 50 people or more, federal law requires 60 days advance notice and continuing benefits during those 60 days. Pennsylvania also requires 60 days' notice. As of April, New Jersey requires 90 days.

"They were informed on June 6," said Rooks. "That day would be their last day."

The class-action lawsuit also claims the Pennsauken, New Jersey corporate employees were not offered severance required by New Jersey law. That's one week of pay for each year the employee worked for the company.

"There was an email sent out to employees that explicitly stated that they would not be receiving any severance," he said.

That attorney says the news of the acquisition does not change the status of the lawsuit he's filed. We asked Forman Mills about it and the company did not provide a response.

But again, it does tell us that all employees who were laid off are back on the job and getting paid.