In a desperate attempt to remain operational, Logan’s Roadhouse terminated all employees and plans to shut down 261 locations. While numerous restaurants have adapted by offering take-out and delivery services, Logan’s opted to eliminate its payroll entirely, resulting in job losses rather than striving to survive during the most severe economic downturn in American history. Logan’s Roadhouse is under the same parent company as Old Chicago, which led to the decision by this large corporation to furlough all employees along with their healthcare benefits at a time when they were most needed.
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Not only did the restaurant chain abandon its workforce amid this health and economic crisis, but the company’s CEO, Hazem Ouf, was also dismissed for embezzlement. He manipulated funds to align with his personal interests without ever obtaining the necessary approvals.

Reports indicate, “Hazem Ouf was terminated as CEO of CraftWorks Holdings for misappropriating $7 million in sales taxes to states where the company’s various brands operated.”

Days following his dismissal for failing to execute this financial maneuver with the consent of the court-appointed supervisory parties, CraftWorks Holdings proceeded to continue laying off employees. The company executed this by “mothballing” all 261 of its locations, citing a lack of funds to maintain operations.

The company neglected to inform employees that their positions were permanently eliminated, leaving some individuals clinging to the hope of returning to work once the initial wave of the COVID-19 pandemic had passed through America.

Prior to the onset of the pandemic, the company faced significant challenges. It initiated Chapter 11 bankruptcy proceedings, a situation exacerbated by the economic downturn that occurred during Trump’s fourth year in office.

Following the dismissal of Hazem Ouf, the company appointed Marc Buehler as the new CEO. He promptly proceeded to lay off employees and revoke their healthcare benefits. As these individuals found themselves in a precarious situation when they required medical care the most – amidst a global pandemic – many are now rushing to enroll in Obamacare, which remains a vital source of affordable health insurance for those in need.

Logan’s Roadhouse had approximately 18,000 employees who were abruptly terminated due to the company’s poor management and lack of contingency plans for unfavorable circumstances. Instead, the leadership prioritized their own interests and financial gain.

Despite abandoning their employees during a critical time, the company did provide a glimmer of hope.

The organization announced on Facebook, “Logan’s team members — The HOPE Program and Logan’s Love is managed by the CraftWorks Foundation and is a 501(3)c. The mission of HOPE is to support team members or former team members who are currently experiencing a crisis situation. Team members are defined as individuals who are currently or were formerly (up to 4 months post-employment) employed by CraftWorks Holdings.”

Do you believe that companies should prioritize the support of their employees during this time? Or should they focus solely on their financial interests amid this economic crisis?