Dallas Company Emerges as Bankruptcy Buyer for Razzoo’s Cajun Cafe
A Dallas based hospitality company may provide a lifeline for Razzoo’s Cajun Cafe, the Texas restaurant chain that filed for Chapter 11 bankruptcy earlier this fall. Court records show that M Crowd, the parent company behind the Tex Mex brand Mi Cocina, has positioned itself as the stalking horse bidder for Razzoo’s with an offer valued at approximately 18.8 million dollars.
Documents filed with the court on December 2 outline a deal structured as a credit bid, allowing M Crowd to apply debt already owed by Razzoo’s toward the purchase price. If approved, the group would continue funding the company during bankruptcy proceedings and cover costs associated with maintaining restaurant leases and existing contracts. The arrangement would allow Razzoo’s to keep operating while the sale moves forward under court supervision.
Under the proposed agreement, M Crowd would also determine which locations and employees remain as the company restructures. At the time of its bankruptcy filing on October 1, Razzoo’s reported 20 locations and roughly 1,000 employees. The judge overseeing the case has since approved the rejection of three leases, resulting in the official closure of restaurants in Corpus Christi, Pasadena, and Oklahoma City. While the Pasadena site had already shut down prior to the ruling, two other Houston area locations in Stafford and Spring continue to operate.
Dallas Company Emerges as Bankruptcy Buyer for Razzoo’s Cajun Cafe was originally published on myhoustonmajic.com
