Brooke Corp. makes employee cuts
By MIKE CORN
PHILLIPSBURG -- A special master appointed to help sort out financial difficulties affecting Brooke Corp. has laid off as many as 100 employees at the company's Phillipsburg office.
That would leave about 80 people still working for the company, which includes Brooke Insurance among its subsidiaries.
Details of the layoffs still are sketchy, but stem from a decision made by special master Albert Riederer, a Kansas City-area attorney who was appointed by a federal judge to help sort out differences that resulted in a series of lawsuits by Wall Street banks against the company.
"I think they laid off a total of about 100 people," said Rob Orr, a member of Brooke's board of directors but no longer involved in the day-to-day operations of the company. "In this community, that's devastating."
Other reports suggest the actual job losses will be between 40 and 50 employees.
Orr had given up his role in the day-to-day activities of the company and was focusing his attention on resolving the issues that have resulted because of the lawsuits.
Orr, who lives in Smith Center, said the layoffs were conducted by the special master, and he received the information for officers within the company.
Although he is a director, Orr said a news release expected to be released either Friday or Monday will announce he is no longer a shareholder in the company.
"I sold my stock and applied it to the debt of the company," he said in a telephone interview late this morning.
The layoffs, he said, were announced Tuesday afternoon and took effect immediately.
A special reception for employees of the Phillipsburg facility is planned for Friday afternoon, a time when Orr and other primary owners of the corporation plan to extend their thanks.
"This isn't about the business," he said. "It's a social gathering to provide support. What we're trying to do is help people understand."
Orr said he also has a conference call scheduled for this afternoon with Riederer in an attempt to learn more about what has happened.
State workforce agencies will respond to Phillipsburg with a "rapid response" team, designed to help displaced workers enroll for unemployment. The officials also ensure recently laid-off workers are aware of and know how to register for other benefits.
Deb Scheibler of Kansas Workforce One said information packets will be mailed to affected workers and a job search workshop is scheduled for 10 a.m. to 4 p.m. Tuesday at the E-Center, 205 F Street, Phillipsburg. She said a job fair also could be in the community later this month to help connect displaced workers with employers.