The Tribune

By KHRISNA RUSSELL

Tribune Chief Reporter

krussell@tribunemedia.net

FUSION employees have been told the company is facing a payroll deficiency and will be unable to satisfy salaries for this pay period.

Carlos Foulkes, Fusion’s chief executive officer, in an internal letter to workers explained the entertainment centre was a new company and lacked the financial resources that more established businesses have at their disposal.

He said he was “devastated” to have to write this news.

However, Mr Foulkes assured workers they would be paid outstanding salaries as soon as possible.

The grim announcement came nearly one week after Mr Foulkes told The Tribune more than 350 employees had to be placed on unpaid leave hours after Prime Minister Dr Hubert Minnis announced his first COVID-19 emergency order. That order suspended most business operations in the country, with few exceptions, and implemented a curfew.

“As you are aware, due to the global pandemic and government mandates we were forced to abruptly suspend business operations at Fusion Superplex on Thursday March, 19. This unplanned action has resulted in a devastating impact on many businesses locally; however our start-up conditions are even less forgiving,” the letter dated March 25 said.

“As a result of the impact of the circumstances leading to our closure we are facing payroll deficiencies and we will be unable to make payroll for this pay period.

“We are a young business making great strides toward profitability; however we do not have the financial resources like some more established companies that, after years of operations, are able to withstand economic blows such as this.

“We are well on our way to achieving this, but it will take time. As I have advised you in the past, we do not have the privilege of local banking assistance, therefore we cannot call on a local institution in times of need. We are required to create funding from revenue and other external sources. This factor alone makes us very vulnerable during catastrophic events like the COVID-19 pandemic.”

Mr Foulkes said he does not take the loyalty of employees lightly.

“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 due to the company. The payment was intended to satisfy the payroll requirements for the business and maintain the business necessities during the mandated closure. We were advised today (Wednesday) at 3.12pm 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.

“Despite the current circumstances, please know that all funds owed to you will be paid, as soon as it is possible to do so, I humbly request your patience and forbearance as we seek to correct this problem in the coming weeks.”

Last week Mr Foulkes said the company had no other choice but to lay off workers as it was faced with $1.1m in monthly operational costs.

He said revenue was directly tied to the facility’s ability to offer content to viewers.

Despite the circumstances, the CEO said there was no plan to conduct mass layoffs. Instead executives hoped the National Insurance Board would assist the workers until operations returned to normal.