The Bookseller.com

4th July 2009

SSG tribunal claims mount

26.06.08 Graeme Neill and Jo Young

Beleaguered US Christian charity St Stephen the Great is facing tribunal claims from as many as 30 disgruntled booksellers.

Shopworkers' union Usdaw said it was preparing 15 tribunal claims against brothers Mark and Phil Brewer, who run the charity, with a further 17 potentially on the way. Two weeks ago the brothers told staff and suppliers that SSG LLC, the trading company which runs the former SPCK bookshop chain, had filed for Chapter 11 (a form of bankruptcy that allows a business to continue trading and pay creditors over time).

The claims relate to changes made to staff contracts. Usdaw claims that when the Brewers took control of the business from SPCK in October 2006, a new contract was drawn up increasing the working week from 37.5 hours to 40 hours "with no additional pay". It claims the Brewers downgraded part-time contracts to casual ones with no guaranteed hours, and took away all sick-pay rights.

Usdaw's Cherry Hamilton said that an additional five claims were "definitely on the way . . . and there are probably another 12 to come". "We don't yet know what will happen," said Hamilton. "A full hearing could be several months away, but we may get a judgment before then because the Brewer brothers have not responded to the tribunal or communicated with them at all."

The Brewers have declined to respond to repeated requests for comment from The Bookseller. Usdaw said that they also have not responded to the tribunal claims. "If a claim is undefended then the claimants automatically win so we could get a default judgment very quickly, " said Hamilton.

The tribunal claims mark the latest twist in the saga of the bookshop chain. SSG LLC told staff and suppliers it had filed for protection under Chapter 11 of the US Bankruptcy Code in Houston, Texas. It also said that the bookshops would be operated by a business called ENC Management Company, and invited former employees to apply for a position with the company.

The circumstances of SSG LLC filing for Chapter 11 are also being investigated by the UK's Charity Commission.

Who is open? The state of SSG shops, according to Usdaw

Birmingham, Bristol, Cambridge, Canterbury, Carlisle, Cardiff, Lincoln, London and Norwich are closed

Chester and Newcastle are closed but may open two days a week Chichester, Durham, Hereford, Leicester (which is a franchise store), Truro and Winchester are open

Exeter and York will open two days a week

At Salisbury, all the store's staff walked out this month, but future opening plans are unknown

At Sheffield, all staff members were dismissed in February, after which the store was reopened by agency staff. The shop apparently "looks empty" now but future plans are unknown

Worcester may open two days per week
 

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