BLACKWOOD, N.J. (KYW Newsradio) — Employees at a now-closed school and daycare center in South Jersey have hired an attorney to get back pay from the owner, who has filed for bankruptcy.
There's a "For Sale" sign up at Kids Castle in Barrington, which closed abruptly last month. Alex Colella worked there for 12 years and says he had a good relationship with the owner up until the end.
"According to the bankruptcy documents that we've seen, she owes the IRS, I believe, $500,000," he said.
Kate Scott worked there for only six months and thought it was weird they got paid in cash. That's causing problems now.
"I'm unable to prove that I made the amount of money that I made, or didn't make, to the labor enforcement people," she said. "So I can't collect unemployment, because I have no proof."
Scott and Colella fear there will be no money left to pay them after the government gets its money.
Parents are also upset. Some of them pre-paid tuition that hasn't been refunded. They have set up a GoFundMe for the teachers.
The owner's attorney did not respond to requests for comment.
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CORRECTION: This story has been updated to reflect that the school is locagted in Barrington, N.J.
