Wages fine sends pizza outlet to the wall

A Hunter Valley pizza shop is in liquidation just over a month after it was fined nearly $40,000.

The Fair Work Ombudsman began investigating the Eagle Boys pizza franchise at Cessnock after claims some staff members were being paid a flat hourly rate almost 50 per cent below the minimum wage.

The Federal Magistrates Court found owners, Peter and Margaret Stacey, owed 13 employees - most of them pizza delivery drivers - more than $38,000 dollars.

When handing down the judgement last month the court gave the pair 12 months to pay the fine after hearing they were struggling financially and that the business was up for sale.

The business has now shut its doors and liquidators have been called in.

An investigation of the company's affairs is currently underway.

There will be a creditors meeting on November 22.

Source: ABC News, 16 November 2012