With money trouble piling up and the price of its stock down to almost
nothing sources tell 11 News that Enron is only days away from filing
for bankruptcy.
Friday workers carried boxes away from the company's downtown
headquarters. Employees told 11 News that they were paid through Friday.
They are still supposed to show up for work on Monday, but that there's
no guarantee of future pay.
sources also said that as many as three thousand of the seven thousand
Houston workers could be laid off next week as well.
Enron employee Leigh Estes said, "People are mad, frustrated, stressed.
It's hard to keep going without knowing what's going on."
Enron's retirement contributions have reportedly been cancelled tonight
and the Bush administration says it does not have any objection to a
congressional investigation of this unprecedented corporate collapse.
Back in January, the energy giant's stock was selling at nearly $85 a
share, but it's now at just 26 cents a share after falling another ten
cents Friday.
Dynegy pulled out of the deal to buy Enron on Wednesday when two
agencies downgraded the company's credit rating to junk status.
The trouble is spreading, other businesses are now being affected.
The collapse of an energy giant crumbles all the way down to the
kitchen. Every week at Treebeards, the restaurant prepares up to $2,500
of catering orders for Enron. But we expect that there won't be any next
week," said Treebeards' general manager, Jolie Stinneford.
On top of that Treebeards opened a carryout store just a stone's throw
from Enron last year. It was considered a sure-bet for business from the
lunch crowd.
Stinneford said, "Until another company or Enron can hire some more
people, we'll probably feel the loss of those hungry mouths"
Across town another business deal involving Enron took a sour turn. Some
550 salespeople hired by Talent Tree, a temporary agency hired by Enron,
no longer have a job.
They said they didn't get paid commissions that should be coming to them
after signing up electricity customers to switch to Enron. But Friday
night Talent Tree insisted that Enron didn't pay the agency. Doug
Parker, Talent Tree's Chief Financial Officer said, "We're waiting upon
Enron, and we have no information at this time period."
It's not just a shiny building in the heart of Houston spiraling down,
everywhere people are feeling the fall of this corporate empire.
11 News talked with an Enron spokesperson regarding whether or not the
company paid Talent Tree and she said she would research the issue, but
she never called back.
Talent Tree says it will take some time to sort all the facts out, but
in the meantime the workers are out money.
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