As we reported Thursday, Cenveo Corp announced its closing a plant in Altoona in June, which may put the 140 workers out of a job. The company is facing more than $1.4 billion in debt but only lists $790 million in assets. The company is also closing a plant in Pikesville, Md, putting 113 people out of a job. That’s according to the Baltimore Business Journal.
In Dec, 2017, 2 months before Cenveo declared bankruptcy, the board of directors announced a new compensation plan for 2018. The CEO, Robert Burton Sr, his two sons, and three other executives were offered up to 125% bonuses for reaching sales targets that are not outlines. Plus the got a 40-60% immediate cash payment based on their current annual base salary. The Burton family was awarded nearly $3 million dollars for 2018, all while the board was looking at bankruptcy.
Brigade Capital Management stands to lose millions in loans paid out to Cenveo. Brigade filed a petition that indicates the Burton family has received about $80 million of disclosed compensation between 2005 and 2016.
Click here for the SEC report that outlines the latest bonuses.