WILLIAMSPORT – The former employee who accused Shop-Vac Corp. of violating the Worker Adjustment and Retraining Notification Act (WARN) has reached a settlement with the company.
That was revealed Friday when Candice Gair and the company now using the name SV Wind-Down Corp. jointly asked U.S. Middle District Judge Matthew W. Brann to dismiss Shop-Vac from her suit.
The filing noted the other defendant, GreatStar Tools USA, does not concur with the motion.
Approximately 425 workers were phased out when the family-owned Shop-Vac ceased operations in Williamsport on Sept. 15, 2020. GreatStar bought the assets three months later.
Gair then filed an amended complaint to include GreatStar, which is a subsidiary of Hangzhous GreatStar Industrial Co. headquartered in Hangzhous, China.
It contends it is not a legal successor to Shop Vac, the manufacturer of wet/dry residential, commercial and industrial vacuum cleaners.
Terms of the settlement between Gair and SV Wind-Down are not disclosed but a court filing notes:
“Shop Vac is in the process of dissolving and has no assets remaining that could provide recoverable value.
“In addition, it has a senior secured bank loan which renders it insolvent, and because it has sold substantially all its assets, it has no way of ever returning to solvency.
“It will be unable to satisfy any judgment and will soon no longer be able to pay its legal fees.”
SV Wind-Down and Gair urge Brann to approve their motion for those reasons. GreatStar has...
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