Labor Department Probes Troubled Travel Startup Pollen Over Missed Paychecks

The Department of Labor is questioning former employees of the troubled travel and entertainment startup Pollen, seeking information about wages that haven’t been paid for weeks, according to people with knowledge of the matter.

(Bloomberg) — The Department of Labor is questioning former employees of the troubled travel and entertainment startup Pollen, seeking information about wages that haven’t been paid for weeks, according to people with knowledge of the matter.

In social media posts and in interviews with Bloomberg, several ex-staffers have said they didn’t receive pay they were owed for the month of July. An investigator for the Labor Department’s wage and hour division has asked some former employees for information, including copies of recent payslips and descriptions of the hours they worked at the company, according to recently departed employees who asked not to be identified discussing private information. The Labor Department didn’t respond to a request for comment.

Pollen’s owner, Streetteam Software Ltd., said this month said it’s working with Kroll LLC to handle a breakup and sale of its subsidiaries after failing to find a buyer for the whole business. “We’re doing everything we can to secure the best outcome for all our stakeholders, via the sale of our subsidiary companies,” spokesperson Daniel Ritterband said in a statement, adding that its directors are supporting the company with personal funds.

Founded in 2014 by British entrepreneurs Callum Negus-Fancey and his brother Liam, Pollen works with promoters and festivals to plan travel experiences featuring artists, such as reggaeton superstar J Balvin in Cancun and American rapper 50 Cent in Malta. Pollen has raised money from investors including Northzone Ventures, Molten Ventures and Lansdowne Partners.

In the last few months, Pollen has struggled to pay employees, vendors and issue refunds to customers, leaving a trail of complaints behind. Bloomberg reported that some customers didn’t receive refunds for months for events that were canceled or postponed. The startup was derailed by pandemic-related restrictions as well as missteps including unrealistic growth projections, misleading communication with customers, lavish employee perks and unmet financial obligations to departing workers, according to 16 people, including former staffers. Ritterband defended the company’s communications policies.

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