This Recently Bankrupt Southern-Style Restaurant Chain Is Back on a Path to Growth
A beloved seafood chain, which had fallen on hard times during the pandemic, will continue feeding its loyal customers for years to come. After emerging from bankruptcy in December, The Lost Cajun is now ramping up its growth efforts under new ownership.
According to a press release, Executive Decisions Group Inc. (EDGI), a franchise consulting company, has just acquired the Louisiana-inspired seafood chain.
Although the cost of the transaction has not been disclosed, the acquisition includes The Lost Cajun's 23 franchised restaurants, one corporate-owned Louisiana-based location, and The Lost Cajun Spicy Company—an entity created in 2016 that is responsible for the sale and distribution of goods to the chain's restaurants.
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This business deal marks EDGI's first direct acquisition, which was managed by subsidiary Summa Franchise Consulting, an Arizona-based franchise consulting company.
"We recognized something special about The Lost Cajun," Robert Stidham, founder and CEO of Summa, said in a statement. "We're excited to commit our time, talent and resources into growing this popular family-friendly restaurant franchise and introducing it to a new and expansive customer base over the next few years."
Founded in 2010 by Raymond "Griff" Griffin, The Lost Cajun began franchising in 2015 and grew to 26 locations by 2019. However, just over a year ago, pandemic-induced revenue losses and closures pushed the homey chain to file for Chapter 11 bankruptcy. The Colorado-based company reported liabilities of more than $1.4 million and assets of about $338,000.
Despite permanently closing four locations as a result of the bankruptcy, three in Texas and one in Colorado, the Cajun food concept did open five new locations, with the latest taking place in Rancho Cucamonga, Calif. Another restaurant is slated to open in downtown Florence, S.C., according to the chain's website.
The Lost Cajun currently operates 24 units across sevens states, with a third of them located in the chain's home state of Colorado. Going forward, the company plans to open six to eight new locations per year.