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Razzoo’s Cajun Cafe Seeks Chapter 11 Protection in Texas Bankruptcy Filing

The 20‑unit chain plans to keep restaurants open through a court‑supervised restructuring after sales eroded under value‑driven competition.

Overview

  • Razzoo’s filed for Chapter 11 on Oct. 1 in the Southern District of Texas in Houston.
  • The company is operating about 20 locations across Texas, North Carolina and Oklahoma while it evaluates its footprint.
  • Court papers list $10 million to $50 million in liabilities, and long‑term leases total roughly $650,000 in monthly rent with no owned real estate.
  • The CEO cited declining sales from shifts toward convenience and affordability, aggressive discounting by larger casual‑dining rivals including Chili’s and Applebee’s, and crawfish supply and pricing pressures.
  • Four underperforming restaurants were closed in 2024–2025; further closures are being considered, the attorney says the goal is to preserve jobs and restore stability, and the debtors describe potential for future Southeast expansion.