Joe’s Crab Shack makes some drastic changes ahead of the possible sale of the company

Pedro Szekely/Flickr/Wikimedia Commons -- Joe's Crab Shack

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Weeks after Joe’s Crab Shack announced that it was filing for bankruptcy protection ahead of a possible acquisition, Ignite Restaurant Group, the operator for the restaurant chain, is laying off its remaining 87 employees, according to documents released Monday by the Texas Workforce Commission.

RELATED: Aw, shucks: Bankrupt Joe’s Crab Shack has two suitors

“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,” the documents reveal. “This sale procedure will result in the termination of employment of all of Ignite’s employees.”

RELATED: The owners of Joe’s Crab Shack just filed for bankruptcy

Ignite announced on June 6 that it would reorganize under Chapter 11 in advance of an acquisition by KRG Acquisitions Co., an affiliate of Kelly Cos., a San Diego-based private-equity firm.

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