This chain of seafood once flourishing has just declared bankruptcy
The company has been named one of the best 2020 franchises.
The new complete service channel of New Orleans the lost Cajun, which has been named one of theTop franchises in 2020, has now joined the unfortunate group of catering companiesGreatly affected by the CVIV-19 pandemic. The Gumbo-et-Seafood concept filed for the bankruptcy of Chapter 11 of this week, in search of protection after several of its locations are closed and more pending closures.
According to the judicial documents examined byRestaurant BusinessThe loss of Cajun reported liabilities of more than $ 1.4 million and assets of approximately $ 338,000. The chain currently includes 25 sites on seven states, with the majority located in Colorado where it was founded. However, it expects to close more locations.
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"A number of lost Cajun franchisees have failed and those who remain open have suffered significant revenue losses, some indicating the franchisor that the closure is imminent," said the company in the deposit.
Founded in 2010 by Raymond "Griff" Griffin, the chain started the franchise in 2018 and had dozens of locations in the pipeline at the time. While the company tried to mitigate its franchisees in part of the financial burden brought by the pandemic, such as the elimination of franchise costs and the reduction of employee salaries, some operators have always been developed.
The Company did not define its reorganization plans in its depot, but according to theDenver Business JournalThere may still be hope for the survival of the chain. According to LinkedIn's LinkedIn, 9 Colorado sites are always open and the chain notes part of its return work.
For more information on recent restaurant closures, seeParent company of these 6 restaurant chains has just declared bankruptcyAnd do not forget toSubscribe to our newsletterTo get the latest news from the restaurant delivered directly to your inbox.
