GLADSTONE, Oregon (KPTV/Gray News) – Over 200 employees at 23 different Subway locations in Oregon unexpectedly lost their jobs when they learned their restaurants were closing.
At one of these locations, there is a sign on the door that reads “This location is temporarily closed. Stay healthy and see you soon!”
Joanne Kennedy was the manager of that location and said that this sign contained about all the information she received upon closure.
“No warning, no advance warning, no transparency, every one of us was completely taken by surprise,” Kennedy told KPTV.
According to her, things started changing a few weeks ago when she noticed that the groceries she ordered were not arriving.
“There was no communication, it was just ‘keep doing your job, business as usual,’ that’s what I was told, business as usual, they’re looking for a solution to ordering food,” Kennedy said. “We were all swapping food between stores, trying to keep all the doors open, and then no food came.”
Crystal Eang managed the Cascade Station location and also served as district manager.
“On Monday they said you won’t get paid, we don’t have enough money to pay you,” Eang said.
All closed locations were franchises of CapTen Enterprises and Subfecta LLC.
Owner Ann Bell told KPTV that it all started when her bank account was hacked and she lost all the money in that bank account. Since the loss was fraudulent, it was not covered by the FDIC.
She said she was unable to pay food supplier US Foods, and it stopped supplying her restaurants.
She said that because Subway was going through a change of ownership at the time, she was unable to get the support she needed to keep the restaurants alive.
Bell said that at this point she was in the difficult position of having to close the business.
“I understand people’s frustration, I completely understand that,” she said. “The timing couldn’t have been worse.”
She said she is working with the Bureau of Labor and Industries (BOLI) to get her employees their final paychecks and she wants everyone to get what they are owed.
Kennedy and Eang both told KPTV that they had contacted the owners for answers and that although the BOLI process had been initiated, they were told it could take up to 100 days to process.
“I have a car payment coming up, I have insurance and cell phone bills,” Kennedy said. “I live paycheck to paycheck and I have to feed my kids. I don’t know where I’m going to get money for groceries now.”
Kennedy has since found a new job and Eang is hoping to receive unemployment benefits until she can decide what to do next. However, the pair are still dealing with the shock of having their long-standing careers ripped away from them without having any idea why it happened.
“I cried for over a week and a half,” Eang said. “You put so much trust in someone who says they’re going to take care of you, everything’s going to be OK and you’re going to be OK, and then that trust is broken and it’s devastating.”
KPTV contacted the Subway Group and a spokesperson made the following comment:
“Our priority is to ensure that guests can continue to enjoy freshly prepared, high-quality and delicious food by identifying experienced operators in our system who can quickly take over responsibility and reopen the restaurants.”
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