Ohio-based Bob Evans Farms Inc. (Nasdaq: BOBE) has announced it is closing 27 restaurants, including three in Indiana. Chief Executive Officer Saed Mohseni says performance at each location was not meeting expectations.
The closure is affecting restaurants in Indianapolis, Greenwood and New Castle. The other affected restaurants are located in Florida, Kentucky, Maryland, Michigan, Missouri, Ohio, Pennsylvania, Tennessee and Virginia.
"Decisions to close restaurant locations are always difficult," said Mohseni. "Employees impacted by closures have been offered positions in nearby restaurants where possible. In cases where relocation is not possible, severance benefits will be offered to full-time and part-time employees."
Twenty-one of the locations are owned and closed over the weekend. The remaining six locations are leased and are expected to close during fiscal year 2017.
Bob Evans says the closures are expected to improve annual operating income by around $1 million. The company says it is expecting to incur $7.5 to $8 million in expenses due to the closures.