Financing

The Lost Cajun declares bankruptcy

The casual dining chain joins a growing list of restaurants seeking Chapter 11 protection amid the pandemic.
The Lost Cajun
Photo courtesy The Lost Cajun

Casual dining chain The Lost Cajun filed for Chapter 11 bankruptcy protection Wednesday, citing the impacts of the pandemic on its operations and franchisees.

The New Orleans-inspired concept, which was founded in 2010 in Colorado and lists 25 locations on its website, reported liabilities of more than $1.4 million and assets of about $338,000 in a petition filed in the U.S. Bankruptcy Court for the District of Colorado.

The Lost Cajun Spice Company LLC, which was formed in 2016 to handle the sale and distribution of goods to the chain’s restaurants, also declared bankruptcy.

During the pandemic, The Lost Cajun reduced salaries and reduced or eliminated franchise fees.

“A number of The Lost Cajun franchisees failed and those that remain open suffered significant revenue losses, with some indicating to the franchisor that closings are imminent,” the company said, according to court documents.

The Lost Cajun is asking for an immediate transition into Chapter 11, within the next three weeks.

The concept was founded by Raymond “Griff” Griffin, a former bayou fish-camp operator who ended up in Frisco, Colo., looking for medical care for his wife, who hurt her back during a road trip. He opened his first restaurant there, followed by a second in Breckenridge, Colo., according to local media reports. He began franchising the concept soon after and it now lists locations in South Carolina, Texas, Tennessee, North Carolina, Mississippi and Louisiana, in addition to Colorado.

“Given that the restaurant count has shrunk and is anticipated to continue to shrink as a result of COVID and its aftermath, the Debtors filed the instant cases to reorganize their debts and obligations so that Debtors are not, going forward, insolvent,” the petition said.

Earlier this week, buffet operator Fresh Acquisitions LLC and Buffets LLC declared Chapter 11 bankruptcy.

 

 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

In the Del Taco franchisee bankruptcy, signs of the industry’s distress

The Bottom Line: Why did a 22-unit operator of the Mexican chain turn to one of the riskiest pieces of financing? Because the industry is in a tough spot, and some operators have few options.

Financing

Once a skeptic, Domino's embraces third-party aggregators

The Bottom Line: The pizza chain’s deal with DoorDash appears to be working as expected, according to the data firm M Science. Those aggregators have become vital for Domino’s market share, and other chains too.

Food

Lime Fresh Mexican Grill carves out a new pizza category on its menu

Behind the Menu: The Miami-based fast casual partnered with a Florida hot sauce company to launch scratch-made Mexican pizzas with local flavor.

Trending

More from our partners