A change in severance policy by RadioShack Corp. means the bankrupt electronics retailer will not make lump-sum payments to laid-off workers.
The Dallas Morning News reports RadioShack two months ago changed its severance policy to allow weekly or biweekly payments until the full amount is reached. A severance program document obtained by the newspaper describes the payouts.
Fort Worth-based RadioShack on Feb. 5 filed for Chapter 11 protection. RadioShack plans to sell 1,500 to 2,400 stores. The company seeks to close the remainder of its 4,000 U.S. stores.
The newspaper reported Wednesday that terminated employees used to get a lump sum based on years of service. Ex-workers are now in line with others owed money by RadioShack.
RadioShack, with about 27,500 employees worldwide, declined comment on the updated severance policy.
More than a dozen area RadioShack stores are likely to close in the coming weeks, including four in Charlotte. The electronics company has about 25 stores in the Charlotte area, according to its website.
Observer reporter Katherine Peralta contributed to this story.