Parker School Uniforms seeks Chapter 7 bankruptcy

Parker School Uniforms, an 87-year-old Houston company that closed unexpectedly during the first week of 2018, has filed for bankruptcy.

Employees still haven’t received paychecks originally scheduled to be deposited Jan. 4. According to an email the company sent employees, those “payroll obligations are now likely to be addressed by the bankruptcy court during the liquidation process.”

The company did not respond to email requests for comment. Neither did the attorney representing it in bankruptcy proceedings. Salem Investment Partners and Argosy Private Equity, which both list Parker as part of their portfolios, also did not respond to Chronicle emails.

According to the Texas Workforce Commission, Parker School Uniforms laid off 320 workers in Harris County.

The Chapter 7 bankruptcy filing, dated Friday, estimated the company has between 1,000 and 5,000 creditors.

The company lists between $10 million and $50 million in both assets and liabilities, the filings show.

A lawsuit has been filed against the company in the District Court for the Southern District of Texas Houston Division for violating Section 2101 of the Worker Adjustment and Retraining Notification Act that requires employers to provide 60 days written notice to each affected employee prior to ordering a plant closing or mass layoff.

According to the U.S. Department of Labor’s website, employers who violate the WARN Act are liable to give each employee back pay and benefits for the period of violation, up to 60 days. The employer is also subject to a civil penalty not to exceed $500 for each day of violation. This civil penalty can be avoided, however, if the employer satisfies its liabilities to employees within three weeks of the layoffs.

WARN requirements are enforced through the courts, according to the Labor Department.

Parker operated about 36 stores in Texas, Alabama, California, Georgia, Kansas, Kentucky, Mississippi, Oklahoma and Tennessee, according to the lawsuit.

andrea.rumbaugh@chron.com twitter.com/andrearumbaugh

Andrea Rumbaugh / Houston Chronicle Parker School Uniforms abruptly closed earlier this month and filed for Chapter 7 bankruptcy. Employees haven’t received their final paychecks and have sued.