This doesn't make much sense. If my employer didn't pay me for months, the only reason I'd stay is if it was a great company that I loved and believed in. Even then, I have hard time believing a company could make this sort of arrangement in California.

....also-if what you're saying is true-then the company was a hair breadth away from bankruptcy. Someone burning down the warehouse could have been a best case scenario for everyone but the insurance company.