Joe's Crab Shack To Cut 87 Jobs As Bankruptcy Proceeds

HOUSTON, TX — Layoffs and terminations are common occurrences when a company files for bankruptcy, and Joe's Crab Shack is no exception. The chain's parent company, Ignite Restaurant Group, said this week that it would lay off 87 employees in its corporate office as it continues the process of being sold to a private-equity firm.

"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," a document released Monday by the Texas Workforce Commission stated. "This sale procedure will result in the termination of employment of all of Ignite's employees."

Ignite announced on June 6 that it would pursue Chapter 11 bankruptcy and be acquired by San Diego-based KRG Acquisitions. As part of the proceedings, as reported by the Houston Chronicle, Ignite agreed to allow other parties to bid for the Joe's Crab Shack and Brick House Tavern & Tap. Landry's submitted a bid of $55 million, which topped KRG's $50 million offer, and the dispute is ongoing.

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