Razzoo's Cajun Cafe might not be headed for the frying pan just yet. A Dallas hospitality group has quietly stepped up as the stalking-horse bidder in the chain's Chapter 11 case, positioning itself to grab control of the brand and decide which locations live to see another po'boy.
Court filings identify an M Crowd affiliate, ThirtyThree97 LLC, as the proposed buyer, with an offer valued at about $18.8 million, largely through a credit bid. The deal structure would let the buyer apply Razzoo's secured debt toward the purchase price and kick in interim funding so restaurants can keep operating while the bankruptcy case plays out.
As reported by the Houston Chronicle, the offer outlined in Dec. 2 court papers would cover debtor-in-possession financing, cure costs and assumed liabilities tied to existing leases and contracts. The filing notes that M Crowd, parent of the Mi Cocina chain, will get to choose which restaurants and employees it wants to keep. It also shows the buyer intends to keep lending to Razzoo's so locations can stay open while a sale is pursued.
Razzoo's first sought Chapter 11 protection on Oct. 1, listing about 20 locations and roughly 1,000 employees as part of its restructuring effort, according to Restaurant Dive. In a court declaration, the chain blamed high lease obligations, intensifying competition from value-priced national brands and volatile supply costs, especially for crawfish, for squeezing margins and cash flow. Management had already shuttered several underperforming sites in recent months to cut monthly rent before putting the company on the block.
Judge Signs Off On Three Lease Rejections
The presiding judge has approved the rejection of leases at three struggling restaurants, effectively closing Razzoo's locations in Corpus Christi, Pasadena and Oklahoma City, the Houston Chronicle reported. One Houston-area restaurant had already gone dark before the order, part of a broader pullback that management says was necessary to stabilize the business ahead of a sale.
How The $18.8M Bid Would Work
The stalking-horse package is valued at roughly $18.8 million and is described as a credit bid of the company's senior secured debt plus DIP financing and cure amounts, according to Restaurant Business. Court filings reviewed by industry outlets indicate Razzoo's carried about $9.6 to $9.7 million in secured obligations and roughly $3.1 million in unsecured trade debt, figures that help determine how much value different creditor groups can expect to see.
M Crowd already operates multiple Texas dining concepts, led by Mi Cocina, and that existing scale is one reason restructuring advisers favored a going-concern sale instead of a straight liquidation, FSR reports. A strategic buyer with back-of-house systems and landlord relationships in place is better positioned to keep the higher-performing restaurants running while walking away from money-losing leases.
Court Timeline And What’s Next
The court-approved bid procedures set a Dec. 8 deadline for competing offers, an auction date of Dec. 12 and a sale hearing on Dec. 19 in the Southern District of Texas, according to the official restructuring site. Angeion Group hosts the public docket and notices, including the approved bidding procedures and the sale notice. If no higher and better offer emerges at auction, the stalking-horse deal gives M Crowd a clear path to acquire the Razzoo's brand and selected leases, subject to final court approval.
On paper, the stalking-horse setup and the court's lease-rejection orders are designed to preserve as much value as possible for creditors while giving the buyer a clean shot at trimming unprofitable locations. In practice, secured lenders usually stand at the front of the line, while unsecured vendors may end up with smaller recoveries. The court filings spell out the "assumption and assignment" process and required cure payments that would transfer leases to a buyer, and industry coverage has detailed how those mechanics typically play out in mid-market restaurant restructurings. The docket maintained by Angeion Group provides additional information for creditors and any would-be bidders eyeing the chain.
