Pangea Restaurant Group of Missoula informs workers it can't settle last paychecks

Pangea Restaurant Group has informed dozens of laid-off workers in Missoula that they won't be getting their last paychecks on time.

Scott Billadeau, the CEO and managing partner of Pangea, sent a letter to former employees on Thursday last week.

"Over 30 years of employing Missoulians, and I have never before had to send an email of this nature," he wrote. "It pains me to be in the position of reporting to you at this time that PRG cannot currently fund your final paycheck. I say this understanding full well that there is nothing more important in business than making payroll."

Several former workers at Pangea confirmed the authenticity of the email about the paychecks to the Missoulian.

Pangea Restaurant Group abruptly closed two Missoula restaurants it owned, Pangea and Stave and Hoop, on March 31. All workers lost their jobs immediately. Earlier, another restaurant owned by the group called Elote also closed after less than two years of being open.

The restaurant group is being sued in Missoula County District Court by Southgate Mall for allegedly not paying $113,000 in rent for Elote's space.

A Missoula woman, Marilynn Riggs, has sued Billadeau alleging he owes her more than $150,000 in loans and restaurant equipment.

The Montana Department of Labor and Industry has filed a Certificate of Debt saying that Pangea Restaurant Group owes over $71,000 to the state's Unemployment Insurance Division.

A former chef at Pangea is also suing for wrongful discharge of his employment.

Billadeau and Pangea Restaurant Group have filed answers in court denying many of the allegations.

As for the paychecks, or lack thereof, Billadeau said in the letter he has been "working around the clock" to find a solution.

"And I just learned that these funding efforts will likely need to endure into next week, as the parties involved need time to solidify details," he said. "And so I must deliver such last minute news. I will also call you personally (Friday) to discuss this."

He told the workers that the bottom line is that they will get paid.

"I will not relent until this is solved," he said. "I am deeply, profoundly and viscerally sorry for this. I will report back as soon as I know more."

When reached for comment, Billadeau sent a statement to the Missoulian about the issue:

"I have always said that the most important part of running a business is making payroll," he said. "I am quite literally sick to my stomach that various small businesses and now far too many employees are not getting paid. I did everything I possibly could. It was not a 'choice' as many have insinuated. The company flat-out did not have funds (largely due to a forced closure of the business), and I personally went all-in some time ago trying to save the business. I do have a medium-term plan to ensure that employees are paid their current back wages. I truly wish it could be solved immediately, and as I said, I did everything possible to avoid this from happening. I did reach out to every employee to let them know how deeply and profoundly sorry I am for this horrible situation."