The business owner's livelihood is dependent on the business and the alleged employee and the business name have been published on media. The allegations have no proof and are most likely false. The business's reputation is totally damaged and customers are asking for refunds. Really could use some advice and possible ideas for maintaining a livelihood after the damage in reputation for the business owner who has worked hard for years to maintain a strong reputation for the business and now an immature customer has released false allegations to the authorities.
I know this situation well. It can be awful. You have to take strong and immediate action to show that you or your company haven't been complicit in the alleged crime or that your company didn't attempt to hide or cover up anything. You said the allegations are likely false. Without knowing the facts it's difficult to say, but you have the tough decision of whether you distance yourself from the employee, which is likely the right thing to do for your company. You want to stay out of the media and hope it passes soon. This means being silent at appropriate times, but speaking up when necessary to clear your name. I'd be happy to hop on a call and discuss if you're still dealing with this problem.