[chadash]

Just to clarify your point about paying out employees... in what sense do you mean that? Some quick googling says that when a company goes into Chapter 7, employees become creditors for their unpaid wages, which means that they are at least in the same boat as other creditors (although it seems like they might sometimes be prioritized).

[jefftk]

Your source is talking about unpaid wages (legally mandatory), but severance is additional (legally optional) payments the company chooses to make to support former employees.

[IG_Semmelweiss]

And equity is legally subordinate to both of the above.

[hinkley]

Creditors and vendors on the other hand, may not be.

[pc86]

* are definitely not

[hinkley]

You will rudely discover that the landlord gets paid their early termination fees and any back rent before the employees see a single cent.

Unfortunately I had to learn this the hard way (as in I was lied to and assumed they were still going to pay us, and then the payroll money went poof)

[shiroiuma]

That sounds like bullshit (i.e., it shouldn't be this way, I'm sure you're correct). Being a landlord should entail a certain amount of risk: you're betting the tenant will be able to pay the rent, so you need to be careful choosing tenants, especially if they're companies, and moreso if they're companies with risky finances.

Why should employees be prioritized below a property speculator?

[pc86]

There are plenty of people who get paid out before the landlord, especially when you're several months in arrears as you almost always are in this situation. It's why in other markets landlords will be pretty quick to evict non-paying commercial tenants, there's a lot of risk and minimal personal guarantees unless it's a brand new business.

[AaronM]

Because much like the house in the casino, the capital class always wins.