No big shocker here: Sam Zell‘s bankruptcy of the Tribune Company is going to end up costing its employees more than just their jobs or perks, it’s also going to retroactively remove their stock ownership in the company.
To be fair, employees will still receive their first share allocations of ESOP, a program that gives employees options in their company. But as The Los Angeles Times noted, “those allocations won’t be worth the paper they’re printed on because of the bankruptcy.” And the Times should know: They are one of the papers owned by the ill-fated Tribune Co., along with The Chicago Tribune.
So, when the company went bankrupt, employees received shares, but now that the banks have bought out Zell, the stock (no pun intended) that the staffers put into their publication is no longer an option.
Read more: Tribune to end employee stock ownership plan