Razzoo’s Cajun chain files for bankruptcy amid sales drop

TYLER, Texas (KETK)– Texas-based Cajun cuisine chain Razzoo’s has officially filed for bankruptcy.

According to court documents, Razzoo’s filed for Chapter 11 bankruptcy on Oct. 1. The company also filed for first-day motions to obtain immediate relief and minimize the adverse effects as it prepares to transition into bankruptcy.

According to Razzoo’s CEO, Philip Parsons, factors that led to the chain filing for bankruptcy included a decline in sales caused by changes in consumer spending habits, partially attributed to the impact of COVID-19, as well as aggressive marketing and value-oriented promotions used by other chains, which negatively influenced Razzoo’s guest traffic.

Parsons also believes that the company’s decision to file for bankruptcy was partially caused by the crawfish season starting earlier in 2025 than in 2024, which led to increased competition for crawfish and drove retail prices down.

As a result, the chain experienced a decrease in sales this season compared to prior years.

Razzoo’s opened in Dallas in 1991 after the initial success of their first location. The company went on to open six locations across Texas, and by 1996, it operated fourteen restaurants across the state. Currently, Razzoo operates 23 restaurants in Texas, having been forced to close three locations in 2025 and one in 2024 due to underperformance.

It remains unknown how the company’s decision to file for bankruptcy will impact its current restaurants, including one in Tyler.

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