Roxy’s Arcade in Central Square closed Monday after its owner said a former manager allegedly “misappropriated tens of thousands of dollars.”
James DiSabatino, owner of Roxy’s Grilled Cheese and Roxy’s Arcade, wrote in an Instagram post that a senior manager had been terminated after the alleged financial misconduct came to light about two weeks ago. It is unclear when or whether the arcade will reopen.
The employee, whom DiSabatino did not name, allegedly failed to submit payments to vendors, leaving thousands of dollars in bills overdue, he wrote.
“Together, the missing funds and unpaid bills put our small business under enormous financial strain,” DiSabatino wrote.
The former manager also allegedly entered into an agreement with the arcade’s game vendor that “significantly increased” game-leasing fees. Fulfilling the agreement would have cost the business $22,000, DiSabatino wrote.
Ownership told the vendor it could not honor the agreement and proposed returning to its previously arranged rate, DiSabatino wrote. “This vendor refused to negotiate and is now removing all of the games from the arcade, forcing us to close immediately,” he said in his post.
Roxy’s Grilled Cheese remains open, however. The restaurant houses the arcade; signs on the arcade’s door read, “Arcade is closed for a private event.”
In a phone call Monday evening with Cambridge Day, DiSabatino declined to comment further on the alleged misappropriation, citing legal concerns.
“We had to furlough 18 people,” DiSabatino said. “We’re trying to get back open as soon as possible.”
A Cambridge Day reporter visited Roxy’s Monday evening, and several employees said they had been told not to speak with reporters.
“We are angry,” DiSabatino wrote on Instagram. “Our staff, guests, and community have every right to be angry too. Our biggest concern right now is the people whose livelihoods depend on this place.”
The Cambridge Police Department did not respond Monday to a request to discuss whether a report had been filed or an investigation opened into the alleged misappropriation.
Michael Monestime, executive director of Central Square Business Improvement District, said his organization is concerned for the workers “facing uncertainty because of the alleged actions of one employee.”
“Roxy’s Arcade is an important part of Central Square’s nightlife economy,” Monestime said in a statement to Cambridge Day. “It has supported drag trivia, a strong DJ culture, and a welcoming place where guests can sip, play and connect. Places like Roxy’s help make Central a destination after dark and contribute to the creativity and energy of the neighborhood.”
The BID launched a GoFundMe to help the affected workers, Monestime said.
DiSabatino encouraged people in the comments on his Instagram post to suggest events and gatherings that could make reopening the arcade possible. Commenters proposed trivia and other game nights, live music, lessons and a Halloween party with a costume contest.
“We’ll be back,” DiSabatino said. “We’re just trying to figure it out.”
This story is part of a partnership between Cambridge Day and the Boston University Department of Journalism’s Newsroom Initiative.
A stronger
Please consider making a financial contribution to maintain, expand and improve Cambridge Day.
We are now a 501(c)(3) nonprofit and all donations are tax deductible.
Please consider a recurring contribution.