Another Restaurant Chain Files for Chapter 11 Bankruptcy

Another chain restaurant has filed for bankruptcy, closing locations and leaving employees “heartbroken” over losing their “second home.”

This comes just one week after Razzoo’s Cajun Cafe abruptly closed its Corpus Christi, Texas, location without warning to employees, per local outlet, KRIS 6 News. Now, the restaurant chain and its parent company have filed for Chapter 11 bankruptcy protection. Court documents filed on October 1 show that Razzoo’s, Inc. and its parent, Razzoo’s Holdings, Inc., are seeking relief to restructure their finances.

Razzoo’s Holdings and Razzoo’s Inc. filed for bankruptcy jointly. Although Razzoo’s Holdings owns 100% of Razzoo’s Inc., they are legally separate companies with their own debts.

The bankruptcy filing states that the board of directors for Razzoo’s Holdings decided filing for Chapter 11 protection was “desirable and in the best interests of the Debtors, their respective shareholders, creditors and other parties in interest.” According to board resolutions from September 17, 2025, the board “reviewed the materials presented by the management of the Company regarding the liabilities and liquidity situation” before deciding to file for both entities.

Restaurant Chain Location Allegedly Told Employees of Closure Via Text Right Before a Shift

The filing occurred days after former employees informed KRIS 6 News they learned of the closure via text message on September 23, just as they prepared for their shifts.

“Everybody was just very heartbroken,” Alizeya Ibarra, a former server, told the outlet. “This was like our second home.”

Razzoo’s bankruptcy filings estimate liabilities and assets both between $10 million and $50 million. The company, a restaurant corporation, lists 1,000 to 5,000 creditors and anticipates funds for unsecured creditors after administrative expenses. Major unsecured creditors include landlords owed millions in back rent, with some claims disputed, such as $4.2 million to THE POINTE II CC, LLC (Oklahoma City), $3.8 million to Corpus Christi Retail Venture, $3.6 million to SABINE 2016-1 LLC, and $1.2 million to CROWN HTV AGENT (North Carolina).

Meanwhile, the company owes around $908,730 in sales tax and $95,000 in income tax to the Texas Comptroller. It also owes over $1.3 million to food supplier Sysco and more than $200,000 to trade supplier Plein Air.

Razzoo’s has locations in Texas, Oklahoma, and North Carolina. The bankruptcy filing lists the company’s main business address in Addison, Texas, with its primary assets located across these three states.

The Texas Workforce Commission confirmed Razzoo’s did not file a WARN Act notice, which requires companies to provide 60 days’ notice before mass layoffs affecting 50 or more employees.

Without warning, over a dozen employees, including Ibarra, were left jobless.

Ibarra said receiving a text about losing her job right before her shift was particularly difficult.

“Maybe a day warning, a day ahead warning would have been better than just like texting us whenever we’re all supposed to come in and just saying sorry we’re closing,” she told the outlet. “This just is really unacceptable.”