Legal Battle: Former Employees Triumph in Wibra’s Bankruptcy Case; Court Seizes EU Court of Justice

2023-06-21 10:05:00

The word of the sixty former employees of the ready-to-wear company Wibra was heard by the Labor Court of Liège. On May 26, the court found in favor of the plaintiffs, saying that the company would not have respected the “Renault law” during the bankruptcy of the stores, which occurred in 2020.

The Court in fact ruled that the managers did not implement the information and consultation procedure with regard to collective redundancies. She also points to the fact that Wibra had submitted a request for judicial reorganization which should logically lead to a wave of layoffs. The employees concerned will therefore receive 3,500 euros in damages.

The Court of Justice of the EU seized

In addition to this first decision, the Labor Court of Liège also decided to question the Court of Justice of the European Union concerning the sale between SA Wibra, bankrupt in 2020, and the company of the same name which took over the ‘taught. In the event of recognition of a business transfer, the new company Wibra will be responsible for paying the compensation of employees dismissed in October 2020.

During the year of the announcement of the bankruptcy, Wibra had tried to sell part of its activities within the framework of a legal reorganization procedure. A proposal launched by the shareholders but rejected by the Dendermonde Company Court. Despite this, the shareholders had prepared their takeover plan before the announcement of bankruptcy.

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