Local pizza chain Upper Crust is set to shut down unless it immediately gets money from investors, according to a new report on Boston.com.
The trouble-riddled chain has reportedly closed down 11 of its 16 locations and let about 140 employees go. Upper Crust needs about $120,000 from investors in order to prevent a total shutdown, says Boston.com.
At a hearing in US Bankruptcy Court Tuesday, the trustee, Mark G. DeGiacomo, said Upper Crust Upper Crust closed Monday night because it had just four days of supplies and only $14,000 in cash after company executives paid themselves a month’s salary in advance.
Upper Crust declared bankruptcy in October after years of financial issues. The trouble began in 2009, when 100 employees sued the chain for unpaid overtime wages. Last week, it was reported that the pizzeria owes $850,000 in those unpaid wages.
Some locations are not affected by the bankruptcy and are operated separately by the chain’s founder, Jordan Tobins.
Tobins has also been cited for “alleged misuse of company funds,” which includes spending money on a yacht, plane and personal residence.
According to today’s report in Boston.com, Upper Crust owes about $3.4 million to creditors.
For more on Upper Crust’s troubles, click here.