LA's Sweet Lady Jane bakery was sued for alleged wage theft in class-action lawsuit before shutdown

LOS ANGELES (KABC) -- When the beloved L.A.-area bakery Sweet Lady Jane announced the shutdown of its six locations on New Year's Day, the company's public statement cited a lack of sales that left it unable to pay its employees.

But Sweet Lady Jane is also the subject of a class-action lawsuit that was filed in Los Angeles County Superior Court on June 30.

The lawsuit, filed by a former employee as the plaintiff, accuses the company of wage theft and mismanagement.

Sweet Lady Jane has denied the allegations, saying the complaint is unverified.

Before the closure earlier this month, the bakery had locations in Santa Monica, Beverly Hills, Calabasas, Encino, West Hollywood and San Fernando. Two others had been planned to open in Larchmont and Marina del Rey.

"We did not come to this decision lightly nor quickly," the company said in a statement on Jan. 1. "While the support and loyalty of our customers has been strong, sales are not enough to continue doing business in the state of California, allowing us to service our lease obligations and pay our treasured employees a living wage without passing those costs directly on to you."