OGDEN, Utah -- Travel plaza and fuel stop operator Flying J Inc. has sent a conditional Warn Notice to the Texas Workforce Commission (TWC) in which it says 32 workers may be laid off at one of its restaurants in Houston, reported The Houston Business Journal.

In its letter to the TWC obtained by the newspaper, Flying J said it anticipates an unnamed national restaurant chain will take over operation of the restaurant on or about December 1 and that, if this occurs, it understands that most or all of the employees will be offered employment.

The new operator may close the restaurant temporarily after December 1 to make branding and other changes, according to Flying J, with the workers resuming their employment afterwards; however, should the new operator's plans change, the employees could be laid off permanently, the company warned.

The layoffs would take effect on or within 14 days after December 1.

 

Meanwhile, a Denny's restaurant will replace Flying J's Country Market restaurant in Pasco, Fla., Jim Baker, Flying J's senior vice president of interstate operations, told The Tampa Tribune.

The Denny's portion of the travel plaza will be renovated over about 12 days, said the report, starting November 30.

Country Market employed nearly 40 people who are expected to be retained by Denny's. "They're interested in all our managers, and as far as I know everyone should keep their job," Baker said. "We're looking at doing this across the country with other major restaurateurs. In this economic climate the franchises are excited about interstate enterprises. It's a new frontier."

Spartanburg, S.C.-based Denny Corp.'s operates more than 1,500 restaurants in the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico.

On Dec. 22, 2008, driven by the precipitous decline in oil prices coupled with the disruption in the credit markets, Ogden, Utah-based Flying J and certain of its subsidiaries, including Longhorn Pipeline Holdings, filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court in Delaware.

All of Ogden, Utah-based Flying J's operations, including approximately 250 travel plazas and fuel stops, have remained open and have been serving customers in the normal course of business.

In mid-July, Flying J and Pilot Travel Centers LLC entered into a preliminary merger agreement that will provide a framework for Flying J's core travel plaza business to emerge from Chapter 11 bankruptcy protection. The pre-merger agreement with Knoxville, Tenn.-based Pilot, which operates 305 travel centers nationally, would allow Pilot to acquire the travel centers owned by Flying J in return for $300 million to $500 million and an equity stake in Pilot.

In June, Flying J closed restaurants at seven of its U.S. locations. It also Flying J trimmed hours of foodservice at some locations. (Click here for previous CSP Daily News coverage.)

Click here for additional previous CSP Daily News coverage of Flying J.