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BURLINGTON — Former employees of Koffee Kup Bakery, including 91 in Brattleboro, will receive their paid-off-time balances after a state judge ruled in their favor Wednesday afternoon.

According to court documents, the employees are owed $812,000 in paid time off, as well as $16,000 in interest on that amount.

On April 26, about 500 employees at Koffee Kup in Burlington, Vermont Bread in Brattleboro and Superior Baking in North Grosvenor Dale, Conn., arrived to work to discover they no longer had jobs.

Employees received their final paychecks, but money deposited along with those checks for paid-time-off balances was rescinded, which created financial problems for many employees.

Koffee Kup’s assets were purchased by Flowers Foods on June 8, which is based in Georgia and operates a distribution facility in Brattleboro for Country Kitchen and other products. Although Flowers Foods supported paying the former employees the rest of their money, it said it had no plans at this time to restart operations at the three bakeries.

The purchase price has been kept confidential, but along with the $828,000 owed to the former employees, other creditors are asking for money, including $600,000 for Bernadino’s Bakery, $500,000 for Ryder Truck Rental, $660,000 to Lily Transportation, and $275,000 for Eastern Packaging.

Chittended Superior Court Judge Samuel Hoar thanked Ronald Teplitsky for his work as the receiver for the Koffee Kup assets and making sure there was “a corpus that is big enough worth fighting over.”

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Hoar described the process as “the carving up of the bird.”

In addition to approving the payment of the paid-time-off balances, Hoar said he will dissolve the receivership once the sale of Koffee Kup’s real estate assets have been concluded. Hoar will then appoint a new receiver to oversee the dissolution of the remainder of Koffee Kup’s assets.

Hoar also granted an attachment sought by Eastern Packaging to preserve the $275,000 it is owed.

While Hoar agreed to the motion, he said it does not give Eastern Packaging priority to receive its full payment or payment ahead of any of the other creditors. He said if any of the other creditors had sought attachments, he would have granted those as well.

Andre Bouffard, attorney for Eastern, said his client also objected to the payment of the time-off balances to the employees.

None of the other creditors objected to making the payout.

Other creditors listed include landlords Nedde/Essex and 784 Realty, Koffee Kup’s former vice president of manufacturing Lauris Benjamin Richards, its former CEO Jean-Francois Morin, Hillcrest Foods, and Turner Government and Public Affairs, a lobbying company.

Bob Audette can be contacted at