In an attempt to survive the economic disaster brought on by the COVID-19 pandemic, Logan’s Roadhouse took a drastic step: they fired all of their employees and closed down 261 of their restaurant locations. While many other businesses were doing everything they could to stay open—switching to take-out and delivery services—Logan’s Roadhouse decided it was better to lay off their workers completely.
It seemed easier for them to cut the payroll and close the doors than try to keep the business running in such tough times.
Logan’s Roadhouse is part of CraftWorks Holdings, a large company that also owns Old Chicago, and it was this parent company that made the decision to furlough every employee and strip them of their healthcare benefits just when they needed them most.
It was a decision that shocked many, leaving workers not only unemployed but without the health coverage they desperately needed during a pandemic. “They just left us in the cold, with no warning and no healthcare,” one employee said. “It was like they didn’t care at all.”
But the story didn’t stop there. The CEO of CraftWorks Holdings, Hazem Ouf, was fired for a serious crime—stealing. He had been moving money around to benefit himself, without any approval. Reports later revealed that Hazem had transferred $7 million in sales taxes to various states without any permission.
As a result, he was fired, and CraftWorks Holdings had to deal with the aftermath. “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 stated.
Days after Hazem’s firing, CraftWorks made the decision to continue firing workers, closing all 261 locations and claiming they didn’t have the money to keep the restaurants open. This decision left many employees in the dark, unsure if they would ever return to work. Some even held onto hope that once the pandemic eased, they would be called back to their jobs.
“I kept checking my phone, waiting for the call that never came,” one worker shared. “It was heartbreaking.”
Before the pandemic, CraftWorks Holdings was already struggling. The company had filed for Chapter 11 bankruptcy, but the economic collapse under President Trump’s administration made things even worse. The pandemic was the final blow, and CraftWorks could no longer keep the business running.
Marc Buehler, the new CEO who replaced Hazem Ouf, didn’t waste any time either. He quickly followed through with layoffs and cut the employees’ healthcare benefits, leaving many people without medical coverage during a global health crisis. This left former employees with no choice but to find affordable health insurance, with many turning to Obamacare for help.
“Without Obamacare, I don’t know how I would’ve survived,” one former worker said. “It was my only option to stay covered.”
The actions of Logan’s Roadhouse and CraftWorks Holdings have left a bitter taste in the mouths of their former employees. Many feel betrayed and abandoned. “They could’ve done something to help us,” one worker said. “But instead, they just left us to figure it out on our own.”
What do you think of how Logan’s Roadhouse handled this situation? Share your thoughts in the comments!
