topic Re: Anyone's company set up as an ESOP? in Community Chat

Anyone's company set up as an ESOP?

drizzellla — Mon, 05 Sep 2022 02:27:20 GMT

When I retired I got a statement showing the value of my ESOP plan. We were allowed to take out a percentage of the account value over a 5 year period.

Well, the company went out of business earlier this year. I have wondered if my ESOP account is worth anything. I have emailed and called a number of times. No one has returned my calls or emails. Since the company no longer exists, I emailed and phoned on their personal phone numbers and accounts.

I looked on line and I could find what happens if the company goes bankrupt. And I am not sure if the company went bankrupt. I went past the building and the company "no longer exists ". Also they no longer have any website. Plus someone mentioned "through the grapevine (ran into at Costco)" that it no longer existed.

So does anyone know if an ESOP account still exists after a company no longer exists? Or does the funds disappear just like the company? Or was the ESOP money held in a separate account? And I can still expect to receive money.

Re: Anyone's company set up as an ESOP?

Cakers3 — Mon, 05 Sep 2022 02:40:32 GMT

@drizzellla You need guidance from a professional accountant or a lawyer.

There are other factors to consider-if the company merged, if the company was sold outright esp. to another ESOP company; if the company is in bankruptcy.

You are going to get answers here that most likely will not apply to your situation.

Re: Anyone's company set up as an ESOP?

gizmogal — Mon, 05 Sep 2022 03:38:53 GMT

This article may enlighten you as to how an ESOP might work with a merger or sale

ofcs company and rights of shareholders at the time there would be a distribution of a company no longer in place

you can also go to the home page of this website to get advice about your situation or to locate a lawyer with knowledge of ESOP matters:

Overall, you need an attorney to advise about any chance of recovery of the funds or to give you tax advice about any deduction for unrecoverable losses.

wishing you a good outcome.

Re: Anyone's company set up as an ESOP?

drizzellla — Mon, 05 Sep 2022 04:10:21 GMT

Thanks for your replys.

The company was not sold and did not merge with another company.

Since I retired the value of the stock rose quite a bit. Guess I will have to do some more homework.

Re: Anyone's company set up as an ESOP?

CalminHeart — Mon, 05 Sep 2022 11:28:32 GMT

When the corporation I worked for went from a mutual to a public company, every employee was given shares in stock. In the 2007 recession, stock value tanked. It took a loooong time to come back and still isn't where it was before 2007. I'm not a huge risk taker given my age so I sold my stock when prices reached a high of a certain amount. The value hasn't gone much higher since then.

An ESOP is an employee benefit plan that enables employees to own part or all of the company they work for at fair market value (unless there's a public market for the shares). So, the employee receives the value of his or her shares from the trust, usually in the form of cash.

Remember, in most cases, the value will go up or down depending on the stock market and if the company goes under, so does its stock.

Re: Anyone's company set up as an ESOP?

drizzellla — Mon, 05 Sep 2022 16:03:12 GMT

@CalminHeart You are so right.

Since the company disappeared, I suspect the stock price tanked. Which is such a shame. The stock price was going up quite a bit in recent years. They were hiring people like crazy to try and keep up with the work.When I retired there were over 50 employees and they had postings for 17 new jobs. The company was in business for almost 70 years.

That is what is so shocking that it just collapsed and disappeared.

Re: Anyone's company set up as an ESOP?

deb5555 — Mon, 05 Sep 2022 21:22:08 GMT

Talk to a tax specialist, they deal with this daily. Do you know someone who was still at the company before it closed/ disappeared?

Re: Anyone's company set up as an ESOP?

deb5555 — Mon, 05 Sep 2022 21:44:06 GMT

Just wanted to add to look up your last statement/ form you received and try and get a phone number or contact your state consumer office for help, dont wait, do it asap!

Re: Anyone's company set up as an ESOP?

drizzellla — Mon, 05 Sep 2022 23:08:55 GMT

@deb5555 wrote:
Talk to a tax specialist, they deal with this daily. Do you know someone who was still at the company before it closed/ disappeared?

I texted my old boss on July 28. She wrote back and said she was on vacation. She would get back to me when she got back. Have not heard a word from her since July 28.

Re: Anyone's company set up as an ESOP?

CrazyDaisy — Tue, 06 Sep 2022 02:14:14 GMT

Chances are unless the company was sold or the assets that were sold exceeded the company debt, there is nothing left. Sorry.

Re: Anyone's company set up as an ESOP?

elated — Tue, 06 Sep 2022 02:36:09 GMT

I think the IRS could give you answers. If the company went belly up and filed Chapter 7, there is no assets and all proceeds go to creditors. I doubt anyone will call you back.

Re: Anyone's company set up as an ESOP?

deb5555 — Tue, 13 Sep 2022 13:25:16 GMT

Have your received any answers yet? I hope you get help soon!

You could try your states unclaimed funds/ property website and put your name in.