A Fresh Round of Restaurant Bankruptcies

Razzoo’s Cajun Café is the latest casual dining brand to file for Chapter 11 bankruptcy protection. The Dallas-based company cited a severe liquidity shortage in the Oct. 1 filing, along with shifts in consumer spending and preferences, fueled by factors such as inflation and higher interest rates.

Founded in 1991 as a New Orleans-inspired restaurant concept, Razzoo’s at its peak operated 24 restaurants in TX, OK, and NC. The company will seek financing or a sale to continue operating as a going concern.

Eatertainment concept Pinstripes Holdings filed for Chapter 11 bankruptcy protection on Sept. 8 and closed locations. Founded in 2007, the Northbrook, IL-based restaurant combines bowling and bocce with bistro fare. It currently operates eight locations, down from 18 earlier this year.

Abuelo’s Mexican Restaurant filed for Chapter 11 on Sept. 2, citing falling sales, rising food and labor costs and staffing shortages as some of the reasons. Founded in 1989, the Lubbock, TX-based brand had gone from 40 restaurants nationwide to just 16 in recent years. It plans to continue normal operations during the reconstructing process.

Iron Hill Brewery & Restaurant was not so lucky. The Exton, PA-based brewpub chain on Sept. 25 announced the permanent closure of all restaurant locations. Iron Hill officially filed for Chapter 7 bankruptcy liquidations about 10 days later.

Other full-service restaurant chains to file bankruptcy this year include Bar Louie, On the Border, Bravo Brio Restaurants, Hooters of America and Bertucci’s.

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