The parent of the Mi Cocina Mexican chain is in line to acquire Razzoo’s Cajun Cafe out of bankruptcy for nearly $19 million.
Dallas-based M Crowd, which owns the 25-unit Mi Cocina and other concepts, was named the stalking horse bidder in Razzoo’s bankruptcy case, according to court documents. Its offer sets the bidding floor for the auction, which is scheduled for Dec. 12.
The offer consists of a credit bid for Razzoo’s senior secured debt and debtor-in-possession financing as well as cure costs and some assumed liabilities, for a total price of approximately $18.8 million, according to the documents.
The 20-unit Razzoo’s filed for Chapter 11 bankruptcy in October, citing inflation and economic uncertainty as well as rising value-based competition from brands like Chili’s and Applebee’s. It had $9.7 million in secured debt and about $3.1 million in unsecured debt, per the filing.
Founded in 1991 in Dallas, Razzoo’s is known for its unique Cajun menu featuring things like alligator, oysters and po’boys. After closing three stores ahead of the bankruptcy, it now has 19 locations in Texas and one in North Carolina.
If M Crowd's offer holds, Razzoo's would join Mi Cocina, a polished-casual Mexican concept, as well as The Mercury, Sushi at the Mercury, Monkey Bar and Vaqueros Texas Bar-B-Que, all located in Texas.
Mi Cocina was founded in 1991 by Michael “Mico” Rodriguez, Ray and Dick Washburne, and Bob McNutt. It’s the 10th-largest Mexican casual-dining chain in the U.S., with total sales of $91.6 million in 2024, according to Technomic.
Representatives from Razzoo’s and M Crowd did not immediately respond to a request for comment Friday.
Razzoo’s is one of a number of casual-dining chains to file for bankruptcy this year, along with Opa! Authentic Greek, Iron Hill Brewery, Bravo Brio Restaurants, Abuelo’s, Pinstripes and Bar Louie.
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