Ignite Restaurant Group Layoffs Hit Corporate Office Employees

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Joe’s Crab Shack Owner Cutting Almost 90 Jobs

Ignite Restaurant Group Inc, the parent company of two casual dining restaurant chains, has announced that it will be laying off up to 87 employees at its corporate headquarters in Houston, Texas. The company owns seafood restaurant chain Joe’s Crab Shack and sports-bar chain Brick House Tavern + Tap.

The layoffs were announced following the company’s Chapter 11 bankruptcy application, which was filed in early June.

The layoff notice, which is required to be filed with state officials under the Worker Adjustment and Retraining Notification Act (WARN Act), suggests that more layoffs are expected to follow.

The notice sent to the Texas Workforce Commission said that Ignite Restaurant Group is planning to sell all of its assets.

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The document read, “In connection with these proceedings, Ignite has sought court approval of a sale procedure that is expected to result in the sale of substantially all of Ignite’s business assets.” It further said, “This sale procedure will result in the termination of employment of all of Ignite’s employees.”

The company also warns in the document that if the deal falls through with its prospective buyer, the company’s future will become uncertain. In that event, the company will not be able to guarantee continued employment to its workers.

The restaurant group’s troubles are owed to an industry-wide decline in sales at casual dining restaurants. Ignite Group was forced to file for Chapter 11 bankruptcy protection after struggling with years of deteriorating sales and mounting debt.

Ignite Restaurant Group has been operating restaurants across America for nearly three decades. It opened its first restaurant in 1991. The group presently owns 137 restaurant locations in 32 U.S. states. It also operates three franchises in Dubai.

According to the company’s bankruptcy filing, the group employs nearly 8,400 employees, mostly in Texas, California, and Florida.

 

Sources

Ignite bankruptcy expected to create corporate office job cuts,” Houston Business Journal, June 26, 2017.

Joe’s Crab Shack operator files for bankruptcy amid casual-dining slump,” Financial Times, June 6, 2017.

Joe’s Crab Shack makes some drastic changes ahead of the possible sale of the company,” Rare Houston, June 27, 2017.

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