Joe’s Crab Shack recently closed its restaurant in Mission Valley, among at least 40 abrupt closings carried out nationwide since early August by the struggling chain amid bankruptcy proceedings.
The closing of the restaurant at 7610 Hazard Center Drive, in the mixed-use Hazard Center off Friars Road, leaves the chain with two restaurants in San Diego County: 525 E. Harbor Drive in downtown San Diego, and 314 Harbor Drive in Oceanside.
The company closed a Pacific Beach location in 2015.
Joe’s Crab Shack is owned by Houston-based Ignite Restaurant Group, which filed for Chapter 11 bankruptcy protection on June 6 as it reorganizes its finances and sells off some locations. The company currently operates 72 Joe’s Crab Shack and 23 Brick House restaurants nationwide.
The fate of restaurants being sold off by Ignite is being sorted out in bankruptcy court. According to the Houston Business Journal, Ignite officials said in June that the company had reached an agreement with KRG Acquisitions Co. LLC, an affiliate of San Diego-based private equity firm Kelly Cos., to buy its brands for $50 million.
However, competing restaurant operator Landry’s Inc. filed a claim with the court, maintaining it previously made an offer to buy the brands for $55 million, before Ignite reached its deal with KRG. On Aug. 7, the bankruptcy court sided with Landry’s, though an actual sale of Joe’s Crab Shack is still pending.
Houston-based Landry’s acquired Joe’s Crab Shack in 1994, but sold it off in 2006.