Upper Crust Files for Bankruptcy Protection

Upper Crust, the gourmet pizza chain that expanded rapidly over the last decade, and has a location in Downton Plymouth has struggled with labor, finances and ownership problemsover the past few years, and today filed for bankruptcy protection.

According to Boston.com, the company defaulted on its loan to TD Bank in late September, and said it owes at least $3.4 million, including more than $500,000 to a Brookline construction company, $234,235 to a local food distributor, and $229,049 to former Massachusetts attorney general Thomas F. Reilly, who represented the business after leaving office, according to a list of creditors filed last week with the US Bankruptcy Court in Massachusetts.

The Chapter 11 filing, which seeks protection from creditors while Upper Crust reorganizes the chain, comes several days after the company shuttered its Waltham location and caps years of turmoil at the upscale pizza empire founded by Jordan Tobins in Beacon Hill in 2001. Upper Crust was profitable in the early years but has been hurt by lawsuits and the founder’s “improper diversion” of corporate assets for his personal use, such as the purchase of a Cessna plane, Dan Hurley, the firm’s chief financial officer, said in an affidavit filed on Friday.

According to the Globe, "Upper Crust’s troubles began surfacing in 2009 when it was ordered by the government to pay workers nearly $350,000 in overtime, following an investigation by the US Department of Labor. Company executives then allegedly devised a scheme to get back the money that included slashing workers’ wages, prompting a class-action lawsuit filed in 2010 by former employees and a second labor department investigation."

The company also owes about $62,000 in state meals taxes, $35,000 in unpaid wages and benefits to workers, and thousands more to other creditors.

Upper Crust started in Beacon Hill in 2001, and was a profitable business for years. The company has been hurt by lawsuits and other problems, according to the Globe, including the founder’s “improper diversion” of corporate assets for personal use. One such impropriety was the purchase of a Cessna plane, according to an affidavit filed in court, the Globe reports.

In 2009 the company was ordered by the government to pay workers nearly $350,000 in overtime. Company executives then allegedly looked to get back the money by cutting workers’ wages, a move which resulted in a class-action lawsuit filed in 2010 and a second labor department investigation, according to the Globe

Upper Crust has 16 locations primarily in Eastern Massachusetts, including the Court Street location.