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Nashville based Logan's Roadhouse fires furloughed employees; may not reopen

A Nashville based restaurant chain has reportedly fired its furloughed employees and possibly will not reopen amid the coronavirus pandemic.

CraftWorks Holdings, parent company of Logan's Roadhouse notified the employees that they were terminated and their healthcare benefits will end on March 31, according to a report by Restaurant Business Online.

The firings took place after the company terminated former CEO Hazem Ouf for passing along $7 million in sales taxes to states where the company's various restaurants operate. Latest Nashville News The funds were reportedly passed along without the knowledge or approval of court-appointed supervising parties, according to a court filing obtained by Restaurant Business Online.

The documents also reveal that former CFO Jim Lebs was also terminated. Court supervisors said they asked states to refund the taxes and received an estimated $360,000.

The taxes were forwarded after CraftWorks said it planned to "mothball" all 261 of its operating restaurants due to a lack of funds. Press Release Distribution Service Most CraftWorks employees were furloughed at the time but several told Restaurant Business Online that they were informed that the restaurants were in danger of not reopening.

Several states have deferred collection of the taxes in an attempt to increase cash flows of small businesses.

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