Roxy’s Arcade temporarily closed after employee embezzlement, owner says

Roxy’s Arcade in Cambridge’s Central Square will be closed until further notice, its owner said, after an employee allegedly mishandled large amounts of money from the business.

Two weeks ago, James DiSabatino, who owns the arcade and the Roxy’s Grilled Cheese restaurant and food truck, discovered that a member of senior management had misappropriated tens of thousands of dollars from the arcade, he said in a social media post announcing the closure Monday.

“After terminating this employee, we discovered that they had failed to submit and pay thousands of dollars in vendor invoices,” DiSabatino continued. “Together, the missing funds and unpaid bills have put our small business under enormous financial strain.”

DiSabatino learned from Roxy’s video game vendor that the employee agreed to a “significant” increase in game rental fees without his knowledge or approval, the post said.

The vendor, whom DiSabatino did not name, “demanded $22,000” since Roxy’s bill was nearly two months past due and threatened to remove the games from Roxy’s if the balance wasn’t paid, DiSabatino said. The vendor “refused to negotiate and is now removing all of the games from the arcade, forcing us to close immediately.”

DiSabatino asked the public for ideas on how to fill the space in the interim. In the nearly 1,000 comments on the post, people suggested DiSabatino use the space as a music venue or host mahjong or board game events, lectures, and artisan or thrift markets.

“Our biggest concern right now is the people whose livelihoods depend on this place,” the post reads. “We want to keep our team working, keep this space alive, and find new ways for people to come together here.”

For those who want to support the business in the interim, DiSabatino recommended people visit the Roxy’s restaurant in Central Square, book the food truck, and “spread the word,” he said.

When reached for comment, DiSabatino declined to identify the former employee or vendor or say whether he is pursuing legal action against the former employee.

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