Workers at JTF have sought legal advice after the retailer shut its stores, including a Nottingham branch.
JTF Mega Warehouse, which has a store in Hucknall, announced they had gone into administration after they failed to find a buyer for the business.
The Nottinghamshire-based chain operated 12 shops across the Midlands and the north of England, employing 500 staff, but closed them all between May and Friday last week.
This has prompted some staff to seek legal advice from Simpson Millar as as they claim they were not properly consulted about the mass redundancies.
Damian Kelly, head of employment law at the firm, said: “Sadly in this instance we understand that there had been a buyer for the business, but that the sale will no longer be taking place. As a result, the number of employees who are facing redundancy is really quite significant.
“While some companies are struggling because of the pandemic, they still have a duty under current employment law legislation to carry out a proper consultation with staff at risk of redundancies.
“Where that does not happen, employees can bring a claim for a Protective Award.”
In an earlier letter to staff, JTF chairman Arthur Harris wrote: "Unfortunately, our collective efforts to secure a sale of the business have failed and we were forced to cease trading on Friday, July 16.
"As we have ceased trading we are no longer able to offer employment. It is with considerable regret therefore that I must inform you of our decision to terminate your employment."
A Protective Award is a payment awarded by an employment tribunal in cases where an employer fails to follow the correct procedure when making 20 or more redundancies.
Where an employment tribunal finds in the favour of the employees, they will be able to access the funds via the Government Insolvency Service.
