MORE PEOPLE ON THE STREETS AS THE ECONOMY "RECOVERS"

There are a whole bunch of people that are just starting to feel the effect of this massive economic downturn. This one is a double whammy because not only does it effect the Ink Stop Company but it leaves 163 retail units empty, causing additional strain on the property owners and the banks that finance them. Commercial real estate is supposed to be the next major collapse point in the economy.

"No paycheck, no health insurance and no job! That's exactly what all InkStop employees are suddenly dealing with. The company has closed all InkStop stores nationwide, which includes 23 stores in Michigan.

InkStop managers called their employees last night at 10 p.m. to notify them that the company was "temporarily closing" while they restructure the company.

All employees have been laid off. To make matters worse, workers did not get their paychecks Friday. On top of that, they also found out that InkStop didn't pay their health insurance premiums for the month of September. Employees just learned that their coverage actually ended August 31.

The Cleveland-based company has 163 stores nationwide.

Action News obtained a memo from InkStop. You can read the entire memo below:

To All Store Associates,

The company has elected to temporarily close all stores at the close of business today October 1, to focus on a restructuring plan in an effort to improve the overall operations of the organization. All employees are laid off until further notice.

Paychecks will not be issued on Friday due to our cash constraints. We are working on a plan to improve our cash flow situation and re-open under better circumstances.

Below is key information that each of you should have at your disposal.

401k – Anyone who is laid off and currently has funds in the 401k plan, can contact Noble Davis for further information. Their contact number is 888-657-0702.

Medical Coverage – This is the initial notification that the September premium has not been paid. Therefore, your last day of coverage for the qualifying event is August 31, 2009. If you have other options for coverage (i.e. spouse), please contact them immediately for further information. You have 30 days from a qualifying event for this election. Individuals who do not have this option can seek insurance resources online for coverage needed. For individuals/children with severe medical conditions, individuals should contact your local Health & Human Services for a Medicaid application.

According HIPAA, in order to have guaranteed issue minimizing pre-existing conditions, you cannot have a break in coverage for longer than 62 days.

COBRA will not be available as there is no group sponsored plan.

Other Insurances have been paid through August 31, 2009.

Your patience during this difficult time is appreciated it.

Sincerely,

The InkStop Board of Directors"

WXYZ

(H/T to The Coming Depression)