Joe's Crab Shack

Ignite files for bankruptcy

After speculation that it would do so, the parent company of Joe’s Crab Shack and Brick House Tavern + Tap is seeking Chapter 11 bankruptcy protection.

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Joe's Crab Shack

Parent Ignite Restaurant Group has been struggling to regain financial footing with the chain

The casual chain has quietly been cut by more than a third as it awaits a change in ownership.

Management says the venerable Italian chain will use the filing to renegotiate leases on 37 closed sites.

Sales also slowed at sister brand Brick House Tavern + Tap during Q3.

Or at least not in 14 of the 18 restaurants that switched to a revenue-sharing model for compensating servers, revealed Ignite Restaurants, parent of the Joe's Crab Shack chain. Joe's was the first full-service restaurant chain of scale to experiment with the discontinuation of tipping.

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The filing could come as early as next week, according to one report.

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