Party City Holdco Inc. won final court approval to settle with hundreds of employees it abruptly laid off last year as it entered bankruptcy for the second time.
Judge Alfredo R. Pérez of the US Bankruptcy Court for the Southern District of Texas approved the nearly $4 million settlement on Oct. 17, granting priority claims of $10,100 each to 394 employees who sued after the company filed for Chapter 11 in December.
The employees brought their case under the Worker Adjustment and Retraining Notification Act, known as WARN, which requires employers to provide adequate notice—typically 60 days—before mass layoffs or ...