Joe’s Crab Shack closes OKC, Tulsa locations

Three Joe’s Crab Shack locations in Oklahoma, including two in Oklahoma City, appear to have closed as a pending sale of the chain waits for approval in federal court.

The phones weren’t being answered on Wednesday at the Joe’s Crab Shack locations at 5940 Northwest Expressway or 1508 SW 74.

The phone also wasn’t being answered at the Joe’s Crab Shack at 7646 E 61st in Tulsa.

A spokesman for the owner, Ignite Restaurant Group, Inc., didn’t respond to an email asking for information about the closings. Ignite Restaurant Group owns both Joe’s Crab Shack and Brick House Tavern + Tap.

On June 6, the company announced in a news release that it had a pending deal to sell both operations to a private equity group in San Diego, California.

The release also announced it would seek Chapter 11 bankruptcy.

As part of that reorganization, a petition the company filed in Houston federal bankruptcy court asked a judge to set an auction for those assets. The judge approved the plan, and the auction was held Aug. 7.

Landry’s Inc. submitted a bid to buy the restaurants for $55 million, according to a court filing. A hearing to consider the potential sale is scheduled for Thursday.

While Ignite said in June that its Joe’s Crab Shack and Brick House Tavern + Tap locations would “remain open and operating, as usual,” closings across the country started happening this week, according to a post made on consumerist.com.

Jake Dollarhide, the principal of Longbow Asset Management in Tulsa, was surprised Tuesday to hear the Oklahoma Joe’s Crab Shack locations were closing.

But Dollarhide also said he’s observed recently that some restaurant operations appear to be struggling as consumers’ behaviors shift.

“With the move to healthy, organic eating and the onslaught of delivery services, it’s been tough on chains that haven’t kept up with those trends,” he said.

Additionally, he said restaurants of all types remain under pressure because consumers are getting more selective about how to spend their disposable income.

“When you are talking restaurants, it’s really becoming a market of haves and have-nots,” Dollarhide said.