In a desperate attempt to save itself, Logan’s Roadhouse made the shocking decision to fire all of its employees and shut down its 261 restaurant locations. While most restaurants were switching to take-out and delivery options during the economic crash caused by the COVID-19 pandemic, Logan’s Roadhouse chose a different path.
They decided it was easier to let go of their entire workforce rather than try to survive the financial storm.
The company behind Logan’s Roadhouse, CraftWorks Holdings, also owns Old Chicago. It was this larger parent company that made the final call to furlough all the employees, leaving them without healthcare benefits in the middle of one of the worst health crises in American history. “They didn’t even give us a chance to adjust,” one employee said. “They just cut us loose.”
But as if that wasn’t bad enough, the company’s CEO, Hazem Ouf, was caught in a scandal of his own. He was fired for stealing, having moved money around to suit his personal interests without any approval. Reports revealed that Hazem had passed along $7 million in sales taxes to states where CraftWorks Holdings operated its various restaurant brands.
One source stated, “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.”
Following Hazem’s disgraceful exit, CraftWorks Holdings didn’t waste any time continuing to fire employees. The company claimed it had no money to keep the restaurants running, so it began “mothballing” all 261 Logan’s Roadhouse locations. What made things even worse for the employees was that many of them weren’t even told their jobs were gone for good.
Some held onto the hope that once the first wave of the COVID-19 pandemic was over, they’d be called back to work. “We were just waiting to hear from them,” one former employee shared. “I thought I’d have my job back, but they never called.”
Even before the pandemic, CraftWorks Holdings was already in financial trouble. The company had filed for Chapter 11 bankruptcy, and the economic collapse only worsened their situation. Under President Trump’s administration, the economy took a nosedive during his fourth year in office, making things even harder for struggling businesses like CraftWorks Holdings.
After Hazem Ouf’s firing, Marc Buehler was quickly appointed as the new CEO. He wasted no time in continuing to lay off workers and cutting off their healthcare benefits, leaving employees high and dry at a time when they needed health insurance the most. Many workers had no choice but to turn to Obamacare, as it was one of the only options available for affordable healthcare.
As the dust settles, former employees of Logan’s Roadhouse are left feeling abandoned and angry. “They could’ve at least kept us on healthcare,” one worker said, “but they didn’t care about us at all.”
What are your thoughts on Logan’s Roadhouse’s decision? Let us know in the comments below!
