Sponsored By

Fox & Hound’s shift to part-time workers contributes to bankruptcyFox & Hound’s shift to part-time workers contributes to bankruptcy

Executives say move to avoid health care costs led to high turnover

Jonathan Maze, Editor in Chief

August 11, 2016

4 Min Read
Nation's Restaurant News logo in a gray background | Nation's Restaurant News

Worried about the impact of higher health care costs due to the Affordable Care Act, the owner of Fox & Hound and Champps restaurants converted nearly all of their employees to part time. The move backfired, according to court documents, and helped lead to the company’s bankruptcy this week.

The company, Last Call Guarantor LLC, said in a court filing this week that the shift to part-time led many workers to find other jobs. “High turnover results in higher labor costs,” the company said, forcing it to spend additional resources to find and train new workers.

The shift of workers to part time is among a series of failed moves and industry challenges that Last Call described in court documents as contributing to the company’s second bankrup...

Create a free account or login

This content is available for registered users

Already Subscribed?

About the Author

Jonathan Maze

Editor in Chief, Restaurant Business

Subscribe Nation's Restaurant News Newsletters
Get the latest breaking news in the industry, analysis, research, recipes, consumer trends, the latest products and more.