Logan’s Roadhouse Closing 261 Stores, Firing All Laid-off Workers
In what has to be a punch to the gut, furloughed employees with Logan's Roadhouse are finding out this morning that their temporary out-of-work situation is permanent.
Restaurant Business is reporting that Logan's parent company is "mothballing" all 261 locations of the popular restaurant. CraftWorks Holdings also reportedly fired their CEO Hazem Ouf and CFO Jim Lebs after the two were accused of paying the company's bills without permission. In total, close to 18,000 are receiving a pink slip.
According to court documents the pair are responsible for paying around $7 million in sales tax to states where the restaurants operate. Unfortunately, the allegedly did so without "knowledge and prior approval of court-appointed supervising parties." Representatives of the company actually asked for the money back, but only received $360,000. The company claims that without this money for their operating budget, they had no choice but to declare bankruptcy.
That's when those in charge laid-off all of the employees, but didn't inform them that the move would be permanent. That notice reportedly came late yesterday, or some time today. The company's other restaurant brand, Old Chicago, will also fire all of their workers.