Emotional Stress When Your Company Files Bankruptcy.

Emotional Stress When Your Company Files Bankruptcy.

It was sad to read that Bed Bath & Beyond filed for Chapter 11 bankruptcy on Sunday, April 23, after failing to secure funds to stay afloat. Now it's heartbreaking to see the STORE CLOSING SIGNS on the storefronts like the one in my neighborhood. Many people forget bankruptcy's emotional toll on the thousands of employees dedicated to the company.

Have you ever wondered what you would do if your company went bankrupt? Would you leave immediately, stay until the end, or hold out hope for a recovery?

I faced a bankruptcy situation in 1995 as ops/store remodeling for Caldor Department Stores, a Northeast chain with 154 locations and 22,000 employees. Despite the emotional roller coaster of saying goodbye to dedicated staff members over five months of liquidation, I remained with the company until the last fixture was sold. Most of Caldor's stores were local neighborhood shops, and the staff felt more like family than coworkers, many having served together for decades.

Surprisingly, the experience led to a new career in resume writing and starting a career service company Career Thinker 15 years later, after I left Caldor. I helped hundreds of Caldor employees among the 20+ Lond Island and Queens locations write resumes and practice interviewing. I held resume writing workshops before and after store hours and set up PC and Printing workstations for employees without home computers. It was one of the most rewarding times in my career; I still get emails and holiday greetings from ex-employees 15+ years ago, thanking me.

When a company goes through bankruptcy, it can have a significant emotional toll on its employees. Here are everyday common emotional experiences that employees may go through during this challenging time:

1. Uncertainty and Fear: Bankruptcy often brings a sense of uncertainty about job security and the company's future. Employees may worry about losing their jobs, financial stability, and ability to support themselves and their families. This fear can lead to heightened stress and anxiety.
2. Anger and Resentment: Employees may feel anger towards the company's management or the circumstances that led to the bankruptcy. They might feel betrayed if they believe management made poor decisions or mishandled the company's finances.
3. Loss of Identity and Self-Worth: For many people, their job is not just a source of income but also a significant part of their identity and self-worth. When a company goes bankrupt, employees may lose their professional identity and struggle with feelings of failure, even if the bankruptcy was beyond their control.
4. Grief and Loss: Bankruptcy can result in losing jobs, benefits, and sometimes even long-standing careers. Employees may experience a sense of hopelessness over losing their work community, relationships with colleagues, and the stability they once had.
5. Stress and Anxiety: The overall stress level tends to increase during bankruptcy, as employees face uncertainty, potential layoffs, and changes in work conditions. The pressure to perform, fear of the unknown, and increased workload due to downsizing can contribute to heightened stress and anxiety.
6. Decreased Morale: The negative impact of bankruptcy on company morale is often significant. Employees may witness layoffs, reduced resources, and a decline in workplace morale, leading to a sense of pessimism and decreased motivation.
7. Impact on Personal Life: The emotional toll of bankruptcy can extend beyond the workplace, affecting employees' personal lives and relationships. Financial stress, increased work demands, and emotional strain can strain personal relationships and overall well-being.

Companies need to provide support and resources to help employees cope with the emotional toll of bankruptcy; this may include communication about the situation, access to counseling services, job placement assistance, and a supportive work environment to help employees navigate this challenging time. Still, sadly, many companies don't do enough. If you know anyone working for a company in bankruptcy, hug them, tell them you understand, and stand by them in this challenging time.

Be prepared,

As individuals, we are responsible for being ready for any career opportunity or emergency, regardless of our job or corporate status. You can adopt a career-oriented approach by keeping your resume and LinkedIn profile current and relevant to your goals or targets. Career Thinker offers a complimentary resume and LinkedIn review to help you get started. Don't wait until you're in a state of panic or insecurity - be prepared. Click on the link or calendar below to schedule a review session and answer a few basic questions.

https://form.jotform.com/CareerThinker/-resume-linkedin-request

Tom Powner

??NCOPE?LinkedIn Strategist Trainer

??CPRW?(Certified Professional Resume Writer)

??CCMC?(Certified Career Management Coach)?

??CEIP?(Certified Employment Interview Professional)

??CDCC?(Certified DISCstyles? Communication Consultant)

??JANP?(Just A Nice Person)