<span style="color: #a1a1a1;">After a major company downsizing a couple of weeks ago that saw Wigwam Mills Inc. (Wigwam) terminate 121 of its 142 employees and move two fourth-generation family members into top management positions in early June, the Wisconsin sock maker is now facing a lawsuit filed by its former CEO for issues surrounding his termination in April 2020.

Thomas Wheeler, the now-former CEO of Wigwam Mills, hired in September 2016, alleges in his complaint, filed on June 8, 2020 with the U.S. District Court for the Eastern District of Wisconsin, Green Bay Division, that he was terminated on April 13, 2020 without advance notice and without a statement of cause as outlined in his Executive Employment Agreement (Agreement). He further claims that Wigwam failed to honor other elements of the Agreement, most notably a compensation clause. The complaint states, “Wigwam abruptly terminated Wheeler’s employment without cause. Since then, Wigwam has refused to pay Wheeler the compensation due under the Agreement for his termination without cause and thus materially breached the Agreement causing him damages.”

The complaint outlines that Wheeler was terminated on April 13, 2020, the termination was immediate and without 30-day notice as required in the Agreement. The complaint alleges that “no factual reason” was provided to Wheeler when he was terminated. The complaint further states that the HR Director told Wheeler that “there is no recourse as the decision has already been made.”

Among other terms in the Agreement, the complaint alleges that in Paragraph Two of the Agreement that Wheeler’s employment would continue for one year from his date of hire and “renew thereafter for consecutive one-year terms unless the Company, or Executives, provided written notice of non-renewal at least 30 days prior to the expiration of the original term of this agreement or any subsequent renewal thereof.” The complaint states that “Wigwam never provided Wheeler with a notice of non-renewal.”

<span style="color: #a1a1a1;">On April 27, 2020, through his counsel, Wheeler advised Wigwam that it had failed to pay Wheeler his full salary and other benefits as provided for by the Agreement

Wheeler is seeking compensatory damages with prejudgment interest; attorney’s fees, costs, and disbursements of the action, to the extent permitted by law; and “any additional relief as may be appropriate.” He is also seeking “a permanent injunction prohibiting Wigwam from enforcing the restrictive covenants, including the noncompetition and nonsolicitation provisions.”

The case was assigned to Magistrate Judge Nancy Joseph on June 9, 2020.

Wigwam’s attorney told the Sheboygan Press the documents have not been served to the company yet, but he expects that to happen soon. He said that once the documents are served, they will have “approximately 40 days to file a response to the claim.” He said the response from Wigwam “will be filed in time.”

“We’re absolutely confident that we will prevail and that the allegations in the (complaint) are totally without merit,” Gill told the Sheboygan Press.

SGB Media reached out to the attorneys for Wigwam and Mr. Wheeler as well as Wigwam’s communication team for comment but have not received a response. Photo courtesy Wigwam Mills