After laying off 350 of its employees last week, CEO of Fusion Superplex Carlos Foulkes said the company is not in a position to meet its staff payroll for this period due to the global outbreak of COVID-19.
In a letter to staff dated March 25, Foulkes said while the young company has made great profitability strides in its near two year existence, it does not have the financial reserves, like more established companies, to withstand economic blows like the mandated 24-hour curfew announced by the prime minister in an effort to contain the deadly virus.
“Over the past year we have maintained direct and honest communication with you, and I do not take your loyalty to the business lightly,” he wrote.
“Frankly, I am devastated that as a result of our financial position as a new business I must now communicate this matter to you during an already difficult time. In full disclosure, we were expecting to receive funding from a payment that was past due to the company.
“This payment was intended to satisfy the payroll requirements for the business and maintain business necessities during this mandated closure. We were advised today at 3:12 pm that due to the global events, our partners have suspended the payment process and will not pay the amount owed on the anticipated timeline. As a result of this warning with such short notice, until this afternoon in fact, we were unaware that we would not be able to satisfy payroll.”
Foulkes said while he does not know when the entertainment center will reopen, the company is committed to maintaining its level of employment.
“Despite the current circumstances, please know that all funds owed to you will be paid, as soon as it is possible to do so,” he said.
“I humbly request your patience and forbearance as we seek to correct this problem in the coming weeks. This impact is experienced by employees of all levels and the shareholders who are now seeking to help with this matter personally.
“In the interim, provisions have been made with the National Insurance Board (NIB) for you to apply for the unemployment benefit. The company is submitting the requisite documentation electronically this week and NIB awaits your personal submission of the electronic application for the unemployment benefit due to your laid off status.”