In a desperate move to save their business, Logan’s Roadhouse made the shocking decision to fire every single one of its employees and close down all 261 of its locations.
While many other restaurants were turning to take-out and delivery to stay afloat during the economic collapse caused by the COVID-19 pandemic, Logan’s Roadhouse took a different path. Instead of trying to stay in business, the company decided it would be easier to let go of its entire workforce.
Logan’s Roadhouse is owned by CraftWorks Holdings, a large company that also owns Old Chicago. This parent company made the call to furlough all employees, including taking away their healthcare benefits just as the pandemic was hitting hard. Workers were left with nothing when they needed their jobs—and their health insurance—the most.
One former employee said, “It was like they just threw us away. We were already scared because of the virus, and then we found out we were out of work with no health coverage.”
But the bad news didn’t stop there. The CEO of CraftWorks Holdings, Hazem Ouf, was caught in a major scandal. He was fired for stealing money from the company, moving it around to benefit himself without approval. According to reports, Hazem Ouf had been passing $7 million in sales taxes to different states where CraftWorks brands operated, without any legal permission to do so.
“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,” one source said.
Just days after Hazem Ouf was fired, the company continued its wave of layoffs. CraftWorks announced they were closing all 261 locations and “mothballing” the restaurants, claiming they didn’t have the money to keep them running. Unfortunately, many employees weren’t even told that their jobs were permanently gone.
Some workers held onto the hope that once the pandemic passed, they’d be able to return to work. “We kept waiting, hoping the phone would ring, but it never did,” one worker shared. “We thought maybe it was just temporary, but it turned out they weren’t coming back.”
Before the pandemic, CraftWorks Holdings was already struggling financially. They had filed for Chapter 11 bankruptcy, and the COVID-19 crisis made their situation even worse. The economy had been in trouble for a while, especially during Trump’s fourth year in office, and the pandemic was the final blow for many businesses, including CraftWorks.
After Hazem Ouf was fired, Marc Buehler was appointed as the new CEO of CraftWorks. He didn’t waste any time either. Under his leadership, employees continued to be fired, and their healthcare benefits were cut off at the worst possible time. This left many workers scrambling to find affordable healthcare, as they no longer had any support.
Obamacare became a lifeline for many people who had nowhere else to turn. “Without Obamacare, I don’t know what I would’ve done. I couldn’t afford to go without health insurance during this pandemic,” one former employee said.
The way Logan’s Roadhouse and CraftWorks handled the situation has left many people angry and upset. They were abandoned at the moment they needed help the most. “They could’ve at least helped us get through this,” one worker said. “Instead, they just left us to fend for ourselves.”
What do you think about what happened at Logan’s Roadhouse? Share your thoughts in the comments!
