Logan's Roadhouse Fires All Employees, Closes 261 Restaurants

The coronavirus has had a giant impact on the food industry, forcing restaurants to switch to take-out, and for some, close their doors. According to Restaurant Business Online, the parent of Logan's Roadhouse and Old Chicago have notified their furloughed employees that they have been terminated and their healthcare benefits ended on March 31. The move came as "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." The funds were moved without the knowledge of court-appointed supervising parties and thus, the company fired Hazem Ouf.

A few days later the company announced it was "mothballing" all 261 restaurant locations because it did not have the funds to keep the restaurants open. At the time all the employees were furloughed, and several noted that they were not informed that the restaurant might not open again. Before the Covid-19 pandemic, the company had filed for Chapter 11 bankruptcy protection but it wasn't until recently that the company decided that keeping the locations open was hurting the bottom line more than anything.

According to an email from the new CEO Marc Buehler, the health insurance was terminated, leaving employees without coverage; a scary situation to be in while the coronavirus pandemic lets loose across the nation. While this could possibly be a temporary closure, there's no saying if the 261 Logan's Roadhouse locations will ever open back up. According to AL.com, restaurant chain Logan's Roadhouse had around 18,000 employees. Our thoughts go out to all the affected employees and how their jobs and health insurance was revoked during this time of crisis.

The steakhouse is known for serving delicious appetizers, grilled steaks, and buttery dinner rolls. Along with Logan's, CraftWorks also operates Rock Bottom Restaurant & Brewery, Gordon Biersch Brewery Restaurant Group, and ChopHouse.