US Trustee Says Cache Kept Workers' Health Care Deductions

Law360, Wilmington (August 6, 2015, 8:20 PM EDT) -- The federal bankruptcy watchdog said Thursday that defunct apparel seller Cache Inc. left more than 800 employees potentially on the hook for medical bills when it deducted insurance payments from their last paychecks, but didn’t transfer the money to the insurer while the retail chain’s going-out-of-business sales were winding up.

In a motion before the Delaware bankruptcy court, the U.S. Trustee’s Office pushed to have the case immediately converted to a Chapter 7 and handed over to a court-supervised trustee, alleging that Cache has committed serious...
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