Cambridge Arcade Temporarily Closes After Owner Reports Missing Funds

Missing funds, unpaid invoices, and a dispute with the business's video game vendor have forced the business to take a hiatus.

By Benjamin Pierce, Patch Staff

Oct 21, 2026 10:31 AM EDT

CAMBRIDGE, MA — An arcade has temporarily closed after its owner said a former employee misappropriated tens of thousands of dollars from the business.

Roxy's Arcade at 292 Massachusetts Ave. in Central Square announced its closure on Monday, Oct. 19. Owner James DiSabatino said missing funds, unpaid invoices, and a dispute with the business's video game vendor forced the arcade to shut down until further notice. The closure has furloughed 18 employees.

According to DiSabatino, ownership discovered approximately two weeks before the announcement that a senior manager with access to the business's bank accounts had misappropriated tens of thousands of dollars. After terminating the employee, ownership discovered thousands of dollars in vendor invoices that had not been submitted or paid, leaving the business under significant financial strain.

"Together, the missing funds and unpaid bills have put our small business under enormous financial strain," DiSabatino said in a statement.

While working through the unpaid bills, ownership notified its video game vendor of the employee's termination. DiSabatino said the vendor then disclosed a verbal agreement with the former manager that significantly increased game rental fees without ownership's knowledge or approval.

The vendor said the bill was approaching two months overdue and demanded $22,000, threatening to remove the games if payment was not made. Ownership proposed returning to its previously agreed rental rate, but the vendor refused to negotiate and began removing the games, forcing the closure, DiSabatino said.

The Central Square Business Improvement District has launched a GoFundMe to support the 18 employees affected by the shutdown. As of Wednesday, Oct. 21, the fundraiser had raised $14,544 toward a $26,000 goal through 159 donations.

According to the fundraiser, all proceeds after payment processing fees will be divided equally among the workers to help cover rent, groceries, utilities, transportation, and other immediate expenses. None of the money will go toward business expenses or reopening costs.

"Our biggest concern right now is the people whose livelihoods depend on this place. They deserve honesty and support," DiSabatino said.

Roxy's Arcade operates behind a freezer-door entrance inside Roxy's Grilled Cheese and serves as an arcade bar and event venue. The business has hosted drag trivia and DJs as part of its programming. The Central Square restaurant remains open, and the company's food trucks continue operating for vending and private events.

"We hope to reopen as soon as possible, but we don't have a date we can responsibly promise," DiSabatino said. "In the meantime, we want to build a path forward with this community."

Ownership is seeking ideas for events, performances, pop-ups, markets, and fundraisers that could use the space and help keep employees working.

Community suggestions have included trivia and board game nights, live music, lessons, and a Halloween costume party. Customers are also being encouraged to support the business by visiting the restaurant, booking its food trucks, and sharing ideas for the arcade space.