The parent company of Logan's Roadhouse, Gordon Biersch and Old Chicago, has cut nearly all of its 18,000 employees and closed more than 200 corporate-owned stores, according to court documents and media reports.
CraftWorks Holdings LLC filed for bankruptcy in early March and announced plans to keep all of its restaurants open in the meantime. But the company said in a March 20 court filing that it is "mothballing" all 261 of its restaurants.
The court filing explained that the store closures came after a lender withdrew financing due to the "unprecedented" outbreak of COVID-19.
The company stated it was working to "cut expenses to the bare minimum" in hopes of reopening in the future but acknowledged that the "shutdown could persist for a prolonged period of time, if not permanently."
The Wall Street Journal reported that CraftWorks Holdings sent a memo to employees that stated the status of "all team members will be revised from furloughed to terminated."
“Please know that we continue to work diligently towards a reopening date and are looking forward to the day when we hope to bring many of you back with a new suite of benefits,” CraftWorks told employees in the memo cited by the Wall Street Journal.
While corporate-owned stores have closed, some franchise locations are remaining open, according to reports.
