Traverse City Record-Eagle

December 26, 2009

Newsmakers: Closure leaves workers reeling

Paychecks bounce, debts remain unpaid

BY BRIAN McGILLIVARY

WILLIAMSBURG -- Kristina Piatt's family enjoyed a lean Christmas this year as she continues to struggle with fallout from losing her job at Cherry Blossom LLC -- and losing pay she'd already earned.

At least 25 people found themselves without work on June 1, when Cherry Blossom closed its plant in northern Grand Traverse County. Most were thrust into financial chaos when final paychecks weren't issued by plant owners Chris and Janet Hubbell, and previous checks bounced.

The sudden loss of job and a month's pay had a major impact on Piatt and other workers, she said.

"The stress was so bad it affected my entire family," she said, "but I'm blessed enough to not have my car taken away and almost lose my home like some of my coworkers."

She now works part-time at the desk at an area gym. Piatt also collects some unemployment.

"The paycheck from the part-time job and unemployment doesn't come close to what I made at Cherry Blossom," Piatt said. "I had to wait until I got paid Christmas Eve to go shopping for my daughter because I had no money."

The Hubbells owed Piatt $2,300 for a month's work as their purchasing director. Workers were told to expect full reimbursement by the end of September for wages the Hubbells owed them, but checks that arrived at the end of October came up short. Piatt received $1,558 from the U.S. Department of Labor along with a letter that read: "case closed."

"I'm not happy about it. They still owe me a lot of money, but what am I going to do about it," Piatt said. "I'm actually thankful; without the government I would've gotten nothing.

"I blame the Hubbells. I have nothing good to say to them or about them," Piatt said.

Michael J. Corcoran, the Hubbells' attorney, said he understands the employees' bitterness, but said it's misplaced to lay all the blame on them.

"It would be one thing if the Hubbells put a bunch of money in their own pockets, but they lost everything," Corcoran said.

Cherry Blossom plans to turn over the processing plant, two farms and equipment to settle debts with the company's two main secured creditors, Traverse City State Bank and Ridgestone Bank in Illinois, if it can successfully negotiate an agreement, Corcoran said.

Then the company will file for bankruptcy, leaving several unsecured creditors, including those who sued Cherry Blossom, Chris Hubbell personally and his associated trucking business, to fight over the remaining cherry stock and whatever else remains.

Corcoran said he doubts the plant will resume business as a processing center because waste disposal issues that contributed to its financial problems still have not been solved.

"It's a real quagmire," he said.