Bidding to Buy Upper Crust Pizzerias: Ex-Workers — and their Attorney
Reported to be among the bidders at tomorrow's auction for the bankrupt pizza places: both ex-workers (+ their lawyer) and ex-managers.
The attorney who represents ex-employees in a class-action lawsuit is among the bidders at tomorrow's auction for 10 Upper Crust locations.
The pizza chain went under in October, with, says the Boston Herald, debt of $3-4 million.
The Herald writes:
The company sought bankruptcy protection after it defaulted on bank loans, the U.S. Labor Department forced it to pay $342,000 in back wages to 121 employees, and several lawsuits were filed against it.
Some of those same employees, along with their lawyer, are among bidders for the bankrupt company, according to the Boston Globe.
The Globe quotes attorney Shannon Liss-Riordan, who represents workers in their suit, as saying:
The plan is for employees to have ownership shares, and we are very excited about this.
The Globe also writes that Liss-Riordan admits it is unusual for an attorney to partner with clients and go into business to buy a firm against which a lawsuit has been filed, but she apparently sees no conflict in the proposition.
The Globe reports that, separately, two ex-Upper Crust managers also are bidding.
Upper Crust got into deep financial waters after expanding possibly too quickly, and, according to the Globe, paying out executives a month's salary in advance, which left the company with no money to operate.
Upper Crust pizzerias in Brookline and on Beacon Hill are said to remain open, along with four in Plymouth, West Roxbury, Newburyport and Portsmouth, N.H.