• June 12, 2024

This Popular Steakhouse Has Closed ALL 262 Locations…

The COVID-19 pandemic has forced many restaurants to close their doors in an attempt to help “flatten the curve”. This has left many restaurant owners no other option but to furlough or fire their employees.

This is exactly what happens to the Logan’s Roadhouse restaurant chain, in a desperate bid to stay afloat, the chain has to fire every employee and close 261 locations, rather than try to stay afloat during the worst economic collapse in American history.

CraftWorks Holdings LLC, which operates Logan’s Roadhouse, filed for Chapter 11 bankruptcy and laid off 18,000 employees.  CraftWorks also their CEO and CFO for paying bills without permission.

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.”

Roadhouse’s owner, Craftworks Holdings, claims in the filing that the closure was forced when a lender withdrew financing and the company filed bankruptcy in early March 2020.

“The debtors hope that they will be able to restart their operations at some point in the future, but there are many preconditions to a restart, including the obtaining of financing, the hiring of staff, and the ability to create a coherent and profitable business plan,” Craftworks said in a filing. “The shutdown could persist for a prolonged period time, if not permanently.”

According to multiple reports, the company failed to tell employees that their jobs were gone for good, which meant that some people were holding onto the hope that they’d be able to return to work shortly once the first wave of the COVID-19 pandemic swept across America. And because these employees were left high and dry when they needed health care the most – during a global pandemic – people are scrambling to sign up for Obamacare, which continues to be a respite for people in need of affordable health insurance.

More details of this story from the ‘AWM’ report:

Logan’s Roadhouse had about 18,000 employees who were all suddenly let go because the company was mismanaged and failed to have any backup plan if things did not go their way. Instead, their leadership only looked out for themselves and their pocketbooks.

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.”

Source: AWM

The Daily Allegiant