Logan's Roadhouse Fires Furloughed Employees, Closes All 261 Restaurants

The Logan's Roadhouse restaurant chain has closed all 261 locations amid the coronavirus pandemic, [...]

The Logan's Roadhouse restaurant chain has closed all 261 locations amid the coronavirus pandemic, according to court filings obtained by Restaurant Business Online. All employees who were currently furloughed have reportedly been fired, with their health care benefits expiring on March 31. Logan's Roadhouse's owner, Craftworks Holdings, claims in the filing that the closure was forced when a lender withdrew financing and the company filed bankruptcy in early March.

The debtor-in-possession financing was withdrawn because of the "unprecedented and unforeseen outbreak of COVID-19," Craftworks explained in the filing, adding that there would be several hurdles to reopen after the pandemic restores things more or less to normal. "The debtors hope that they will be able to restart their operations at some point in the future, but there are many preconditions to a restart, including the obtaining of financing, the hiring of staff, and the ability to create a coherent and profitable business plan. The shutdown could persist for a prolonged period time, if not permanently."

Craftworks asked its creditors for "a necessary breathing spell of at least 60 days—and possibly longer" and promised to cut expenses "to the bare minimum" to increase chances of reopening. On March 19, Logan's Roadhouse announced in a statement on social media they had made the decision to temporarily close all their restaurants, calling it "incredibly challenging" to balance the needs of employees and customers.

"It's hard, and it's heartbreaking for the thousands of our heroes, our team members," the restaurant wrote. "Social distancing is something we're not used to doing, but social gatherings on the other hand, game on! Once this is all over, we'd love to invite y'all to kick back at our house, have an incredible hand-cut steak, an ice-cold beer, and enjoy the fellowship of our community."

"Americans always find a way to persevere, and as the Real American Roadhouse, we will too," they concluded. "Please take care of oe another, the country needs it more than ever. See you soon, Logan's Roadhouse."

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