CORPUS CHRISTI, Tx — Just one week after Razzoo's Cajun Cafe abruptly shuttered its Corpus Christi location without warning to employees, the restaurant chain and its parent company have filed for Chapter 11 bankruptcy protection.
Court documents filed October 1, 2025, in the United States Bankruptcy Court for the Southern District of Texas reveal that both Razzoo's, Inc., the operating company that runs the restaurants, and its parent company Razzoo's Holdings, Inc., are seeking bankruptcy relief to restructure their financial obligations.
The two entities filed jointly because, although Razzoo's Holdings owns 100% of Razzoo's Inc., they are legally separate companies with distinct debts and obligations.
According to the bankruptcy filing, the board of directors of Razzoo's Holdings determined it was "desirable and in the best interests of the Debtors, their respective shareholders, creditors and other parties in interest" to file for Chapter 11 protection. Board resolutions dated September 17, 2025, indicate the board had "reviewed the materials presented by the management of the Company regarding the liabilities and liquidity situation" before making the decision to file for both entities.
The filing comes days after former employees told KRIS 6 News they learned of the closure via text message just as they were preparing for their shifts on September 23.
"Everybody was just very heartbroken," former server Alizeya Ibarra told KRIS 6 News. "This was like our second home."
According to bankruptcy filings, Razzoo's estimates its liabilities between $10 million and $50 million, with assets in the same range. The company, which operates as a corporation in the restaurant industry, lists between 1,000 and 5,000 creditors and expects that after administrative expenses are paid, funds will be available for distribution to unsecured creditors.
The chain's largest unsecured creditors include several landlords owed millions in back rent, though the company is disputing several of these claims:
- THE POINTE II CC, LLC (Oklahoma City): $4.2 million (disputed)
- Corpus Christi Retail Venture: $3.8 million (disputed)
- SABINE 2016-1 LLC: $3.6 million (disputed)
- CROWN HTV AGENT (North Carolina): $1.2 million (disputed)
The company also owes approximately $908,730 in sales tax and an estimated $95,000 in income tax to the Texas Comptroller of Public Accounts. Additional significant debts include over $1.3 million to food supplier Sysco and more than $200,000 to Plein Air, a trade supplier.
Razzoo's operates locations across Texas, Oklahoma, and North Carolina. The bankruptcy filing indicates the company's principal place of business is in Addison, Texas, with its principal assets spread across various locations in the three states.
The Corpus Christi location had served the community for nearly four years before closing.
According to the Texas Workforce Commission, Razzoo's did not file a Worker Adjustment and Retraining Notification (WARN) Act notice. Federal law typically requires companies to provide 60 days' notice before mass layoffs or closures affecting 50 or more employees.
The lack of advance warning left more than a dozen employees, like Ibarra, suddenly unemployed.
"A lot of jobs aren't hiring right now," Ibarra told KRIS 6 News. "I have a lot of stuff to pay. I feel like I'm not doing really good right now."
Ibarra said the manner of notification 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 said on September 24. "This just is really unacceptable."
In the days following the closure, two Corpus Christi restaurants announced they were actively hiring former Razzoo's employees.
Scott Rowland, general manager of Ginger Cafe, told KRIS 6 News his restaurant was providing immediate job opportunities to displaced workers.
"Don't stress — you got a job. Don't stress," Rowland said.
Rowland pledged to help all workers find positions, even beyond his own restaurant.
"If I can't have a place for you, I will find a place for you," he said.
Katlynn Garrett, general manager of Panjo's Pizza Parlor, told KRIS 6 News the timing of the closure was particularly troubling.
"How they went about closing and not letting their employees know ahead of time that kind of hurt my feelings because especially getting closer to the holidays, you know, people are already struggling in this economy so you add that on top of it and it's just it wasn't very fair," Garrett previously said.
Garrett said her restaurant was open to hiring anyone in need of work.
"We'll give anybody a chance so if you're looking for a job come in," she said.
Rowland emphasized the importance of community support during difficult times.
"We survive on what's local here... the people the tourism and if we don't step up and help out than people won't come in to us. We have to care so people care about us," he said.
The Chapter 11 filing allows both Razzoo's entities to continue limited operations while reorganizing their debts under court supervision.
