CHICAGO, Ill. — Are Logan’s Roadhouse and Old Chicago closed for good?
According to Restaurant Business Online, the parent company of both restaurant chains, has notified furloughed employees that they have been terminated, without benefits as of March 31st.
The move comes after the CEO of CraftWorks Holdings was fired for passing along $7 million in sales taxes to states where the company’s brands were in operation.
The Tennessee-based company filed for Chapter 11 bankruptcy last month.
CraftWorks Holdings said it is “mothballing” all 261 of its Old Chicago and Logan’s Roadhouse restaurants after a lender withdrew financing to keep the company in operation until it could emerge from bankruptcy protection.
The debtor-in-possession financing was withdrawn because of the “unprecedented and unforeseen outbreak of COVID-19,” Craftworks Holdings said in a court filing.
Craftworks said in the filing, “The shutdown could persist for a prolonged period time, if not permanently.”
