BURLINGTON — Former employees of Koffee Kup Bakery, including 91 in Brattleboro, will receive their paid-time-off balances after a judge ruled in their favor Wednesday afternoon.
According to court documents filed at Chittenden Superior Court, Civil Division, the employees are owed $812,000 in paid time off, as well as $16,000 in interest.
On April 26, about 500 employees at Koffee Kup in Burlington, Vermont Bread Co. in Brattleboro and Superior Baking in North Grosvenor Dale, Conn., arrived at 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Employees received their final paychecks, but money deposited along with those checks for paid-time-off balances was rescinded, creating financial problems for many employees.
On June 8, Koffee Kup's assets were purchased by Flowers Foods, 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, the company has said it has no plans to resume operations at the three bakeries.
The purchase price has been kept confidential. But additional creditors are seeking payments, including $600,000 for Bernadino's Bakery, $500,000 for Ryder Truck Rental, $660,000 for Lily Transportation, and $275,000 for Eastern Packaging.
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."
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 is completed.
Hoar will then appoint a new receiver to oversee the dissolution of the remainder of Koffee Kup's assets.