The lost Cajun declares bankruptcy
Photo courtesy of The Lost Cajun
Casual restaurant chain The Lost Cajun filed for Chapter 11 bankruptcy protection on 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 over $ 1.4 million and assets of around $ 338,000 in a petition filed in U.S. Colorado District Bankruptcy Court.
The Lost Cajun Spice Company LLC, formed in 2016 to handle the sale and distribution of merchandise to chain restaurants, has also declared bankruptcy.
During the pandemic, The Lost Cajun cut wages and reduced or eliminated franchise fees.
“A number of The Lost Cajun franchisees have failed and those that remain open have suffered significant revenue losses, with some telling the franchisor that closures are imminent,” the company said, according to court documents.
The Lost Cajun calls for an immediate transition to Chapter 11, within the next three weeks.
The concept was founded by Raymond “Griff” Griffin, a former operator of a bayou fishing lodge who found himself in Frisco, Colo. Seeking medical attention for his wife, who hurt her stomach. back on a road trip. He opened his first restaurant there, followed by a second in Breckenridge, Colorado, according to local media reports. He began franchising the concept shortly thereafter and it now lists locations in South Carolina, Texas, Tennessee, North Carolina, Mississippi, and Louisiana, in addition to Colorado.
“As the number of restaurants has declined and is expected to continue to decline due to COVID and its aftermath, debtors have filed lawsuits to reorganize their debts and obligations so that debtors will not be insolvent in the future. The petition mentioned.
Earlier this week, buffet operator Fresh Acquisitions LLC and Buffets LLC filed for Chapter 11 bankruptcy.