Late Paychecks From Smith’s Have Glitches

Smith’s Home Furnishings Inc. employees have discovered their paychecks are good for deposit only.

Employees found out Saturday they couldn’t cash their paychecks from the troubled retail chain, a company spokesman said.

The workers returned to the job Friday after the stores were closed for seven days while the company participated in proceedings in U.S. Bankruptcy Court.

Payroll checks were nine days overdue by the time they were finally given to employees on Saturday.

Company spokesman Chuck Hightower said there is money available to pay the checks, but a glitch prevented them from being accepted by banks for cash.

He said the company’s payroll checks had to be adapted with a new account number sticker.

“Halfway through the morning, First Interstate realized the labels would not process for cash,” Hightower said. “Deposits were OK, but for cash they were going to have to wait until Tuesday morning.”