The flavors of New Orleans met the storm of Wall Street this week as Cajun restaurant chain Razzoo’s filed for Chapter 11 protection in Texas bankruptcy court. The company, best known for its spicy fare and rowdy dining atmosphere, said pandemic-driven shifts in consumer behavior and the crushing weight of leases forced its hand.
CEO Philip Parsons, in the Wednesday petition, revealed that Razzoo’s holds assets and liabilities ranging between $10 million and $50 million. Filing under Chapter 11, Parsons insisted, was “in the best interests” of creditors, shareholders, and the company’s thousands of employees.
Pandemic Shifts and Economic Pressures
Razzoo’s, based in Addison, Texas, has endured shrinking sales over recent years, citing a seismic consumer pivot toward convenience, delivery, and affordability since the COVID-19 outbreak. According to first-day filings, inflation, high interest rates, and fierce discounting by rivals have further eroded its footing in the casual dining sector.
The company disclosed it has between 1,000 and 5,000 creditors, with its top unsecured debts owed to landlords: The Pointe II CC LLC ($4.2 million), Corpus Christi Retail Venture ($3.8 million), and Sabine 2016-1 LLC ($3.6 million).
Mounting lease costs proved to be the fatal blow, leaving the Cajun chain unable to cover overhead, supplier bills, and secured obligations.
