Report: Earth Fare employees sue over grocery chain's sudden closing

A class-action lawsuit has been filed by Earth Fare employees less than a week after the company announced that it would be closing all Earth Fare stores.

Posted 3:24 p.m. Feb 10, 2020 — Updated 11:37 p.m. Feb 10, 2020

A class-action lawsuit has been filed by Earth Fare employees, according to ProgressiveGrocer.com.

The suit claims that Earth Fare violated the Worker Adjustment and Retraining Notification (WARN) Act by not giving employees a 60-day notice.

Earth Fare, the specialty natural and organic grocery store, announced on Monday, Feb. 3 that it was closing all of its stores. They began inventory liquidation sales later that week and are continuing to pursue a sale of assets.

The Department of Labor website indicates that the WARN Act requires "employers with 100 or more employees (generally not counting those who have worked less than six months in the last 12 months and those who work an average of less than 20 hours a week) to provide at least 60 calendar days advance written notice of a plant closing and mass layoff affecting 50 or more employees at a single site of employment."

But there are exceptions to the requirements when layoffs occur "due to unforeseeable business circumstances and faltering companies."

Earth Fare filed for Chapter 11 bankruptcy protection on Feb. 4, 2020, the day after they announced that they were closing all stores. "In the Feb. 4 filing with the U.S. Bankruptcy Court in Delaware, Earth Fare reported both assets and liabilities of $100 million to $500 million, " shared supermarketnews.com.

The Asheville, North Carolina based company was founded in 1975 and has approx. 3,000 employees at more than 40 locations across 10 states in the Southeast, mid-Atlantic, and Midwest.

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Announcement of Clearance Sales on Feb. 6

Earth Fare has announced in an e-mail to customers on Feb. 6 that almost everything in the store is now up to 30% off with limited exceptions.

The e-mail indicates that credit and debit cards are accepted and that all sales are final. Coupons may be redeemed at face value only.

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Announcement of Earth Fare Store Closing on Feb. 3

Earth Fare, the specialty natural and organic grocery store, is closing all of its stores according to an announcement by the company on Monday, Feb. 3. They will begin inventory liquidation sales very soon and will continue to pursue a sale of assets, in whole or in parts.

"The inventory liquidation sales will feature a truly outstanding assortment of merchandise at very significant price reductions. We encourage shoppers to visit their nearby location now and take advantage of these savings before it's too late. Store fixtures are also available for sale as part of this process," Earth Fare indicated in a statement.

According to the company, all employees have been notified of the upcoming closure of the company's stores and corporate office.

"Earth Fare has been proud to serve the natural and organic grocery market, and the decision to begin the process of closing our stores was not entered into lightly. We'd like to thank our team members for their commitment and dedication to serving our customers, and our vendors and suppliers for their partnership," the company wrote in their press release.

Earth Fare has implemented various strategic initiatives aimed at growth and expansion in the last few years.

"While many of these initiatives improved the business, continued challenges in the retail industry impeded the company's progress as well as its ability to refinance its debt. As a result, Earth Fare is not in a financial position to continue to operate on a go-forward basis. As such, we have made the difficult, but necessary decision to commence inventory liquidation sales while we continue to engage in a process to find potential suitors for our stores," said Earth Fare.