Former Munchery Employees Sue Over Abrupt Shutdown Without Notice
A group of 250 former Munchery employees file a class-action lawsuit seeking 60 days of unpaid wages after the meal delivery startup abruptly closed its doors. The sudden shutdown also leaves numerous small business vendors tens of thousands of dollars in unpaid debt.
Former Munchery employees file a class-action lawsuit against the meal delivery startup, claiming the company owes 250 workers 60 days of wages. The lawsuit cites the Worker Adjustment and Retraining Notification Act, which mandates a 60-day notice period for mass layoffs at large companies. Munchery instead abruptly announces its immediate closure on January 21, leaving its workforce completely in the dark.
The sudden shutdown creates a massive financial ripple effect for small business vendors in San Francisco and Los Angeles. Local suppliers like Dandelion Chocolate and Three Babes Bakeshop report they are owed tens of thousands of dollars in unpaid invoices, with one vendor claiming a debt exceeding $100,000. These businesses state that Munchery enters into payment plans without any intention of fulfilling those financial obligations.
Former workers directly blame chief executive James Beriker for the mismanagement that leads to this collapse. Alongside the facilities staff and unpaid vendors, Munchery's delivery drivers also report they fail to receive their final paychecks. Despite the overwhelming debt and operational failure, Munchery has yet to officially file for bankruptcy protection.