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. This is part of the company’s bid to stay afloat in these trying times.
“It’s hard, and it’s heartbreaking for the thousands of our heroes, our team members,” the statement reads. “Once this is all over, we’d love to invite y’all to kick back at our house, have an incredible hand-cut steak, an ice-cold beer, and enjoy the fellowship of our community.”
The parent of the Logan’s Roadhouse and Old Chicago casual chains said it is “mothballing” all 261 of its restaurants after a lender withdrew financing to keep the bankrupt company in operation until it could emerge from Chapter 11 protection.
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.
It was reported, “Hazem Ouf was fired as CEO of the company, CraftWorks Holdings, for passing along $7 million in sales taxes to states where the company’s various brands were in operation.”
Although the restaurant abandoned its employees in their time of need, it did leave workers with a bit of hope.
The company shared on Facebook, “Logan’s team members — The HOPE Program and Logan’s Love is managed by the CraftWorks Foundation and is a 501(3)c. The mission of HOPE is to support team members or former team members who are currently experiencing a crisis situation. Team members are defined as people who are currently or were formerly (up to 4 months post-employment) employed by CraftWorks Holdings.”
CraftWorks Holdings, which also owns Old Chicago Pizza & Taproom, Big River Breweries Inc., and Gordon Biersch Brewery Restaurant Group Inc., closed 37 “underperforming locations” prior to filing bankruptcy.
CraftWorks announced the decision to employees Tuesday in an internal memo, leaving thousands of its workers without benefits and health insurance, according to The Wall Street Journal.
Sources: AWM, The Wall Street Journal, Restaurant Business