As a follow up to Mr. Wilson's original post on the topic - I found it fitting to share some of the rumors I've been hearing about the "real reason" why Klein's is closing its doors today (since it is closing day). Hell, I live a few blocks away and talk to a lot of my neighbors so word travels fast.
Ok here goes- And this is based on rumors (some credible, some not) partly pieced together with personal observations and a half-assed knowledge of the law:
It was reported in the LJS that Klein's is losing money. This I can definitely believe. Although I've only lived in the near south area for a few years, most people in the neighborhood seem to drive or walk over to Russ's IGA on 17th and A. Klein's is the kind of place within walking distance where most people pick up a few things they forgot to get at the larger grocery stores. I go to Klein's about once a week to pick up $1-$4 worth of items: laundary detergent, a carton of orange juice, a soda, etc.. I doubt the place has sold more than $75 to a single customer in one visit in a few years.
The two twin sons seem cool to me. After all, I am a regular patron, and I give them kudos for being hospitable and friendly to their patrons.
Having said that, I have also witnessed/overhead directly - or heard hearsay (albeit from sources I tend to trust) - of horrible confrontations between the owner and his sons and the employees. And when I mean employees, I mean some of the older women who still work there as cashiers.
And that's where the rumor mill kicks in. Rumor is: the owner - whether a mix of intentional calculation or poor management - underpaid employees for years. And when I mean years, I mean many years.
So one day, the good old sweet grandmas who have been working there finally wise up and hire an attorney or two. A few weeks later, the Klein's gets a letter - I imagine registered by US postal - asking for backpay. Like around, say, $50,000 in backpay.
Maybe its just a coincidence that the bankruptcy regs are changing now? Perhaps the attorney's involved have been brushing up on their corporations law?
So we all know the story. Liquidate everything now (Klein's has been selling all goods 50% off for the past week or so). File for bankruptcy. Terminate the corporation. Simmer on medium heat and stir until....Walla! You have an entree called "Semi-immunity from a lawsuit."
So what's next? Well one rumor is the Klein's will incorporate anew and put in a new "liability-free" store. After all, I guess they have first dibs since they own the entire building. The other neighborhood rumor is that the owner's of the Mexican-American discount next door (who also own the grocery and taco shop on 13th across from the community center and the El-Charro restaurant) will move in and put in a grocery (although I kinda doubt this since they will be competing against the Russ's on 17th and A that has really been pounding on expanding its market for near south's Latino/Hispanic population).
Ahhhh, well. I will report more on Klein's Corner as things unfold.
Remember, these are all rumors...
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