Some former workers at a now-closed West Union business may sue after being notified they won’t get their final paychecks.
H & H Foodservice Distributing Company was acquired by Hawkeye Food Service Distribution of Coralville recently and the doors on the West Union facility closed on May 29. Some of the West Union employees were offered positions with Hawkeye in Coralville.
On Tuesday, June 2, former employees for H & H were sent letters from a law firm in Des Moines, indicating that following the sale of the company to Hawkeye, H & H has no money left to meet any of its obligations. That includes payroll and accrued vacation for the West Union workers.
According to Hawkeye officials, all the proceeds from the sale were used to pay off a loan and cover costs associated with the sale.
H & H employees were laid off May 29, but have not been paid for their last two weeks of work. Some employees are considering a lawsuit to try to get that pay. Over 90 people were employed at the food service facility in West Union.