A popular health-focused restaurant chain is facing a major shake-up after filing for bankruptcy and abruptly closing a dozen restaurants across the country.
True Food Kitchen filed for Chapter 11 bankruptcy protection on October 5 as it works to restructure its business and pursue a potential sale. As part of the restructuring, 12 restaurants permanently closed after serving their final customers on October 4.
12 restaurants have closed
The closures affect locations in several major markets, including California, Florida, Illinois, Louisiana, Maryland, New Jersey, New York, Ohio, and Virginia. The shuttered restaurants include locations in Century City, El Segundo, San Diego, Miami, Chicago, New Orleans, Bethesda, Edison, Hackensack, Garden City, Columbus, and Reston.
The closures reduce the chain’s footprint from approximately 46 restaurants to 34 locations across 14 states. The remaining restaurants are continuing to operate during the bankruptcy proceedings.
Chain faces financial challenges
Court documents show True Food Kitchen entered bankruptcy with approximately $42.1 million in funded debt obligations. Company officials attributed the financial difficulties to several factors, including significant management turnover, shifting expansion strategies, unsuccessful new concepts, and the lingering effects of the COVID-19 pandemic.
The company also experimented with ghost kitchens and a delivery-only kitchen during the pandemic, efforts that officials said negatively affected staffing and the guest experience.
True Food Kitchen has secured a commitment for approximately $20 million in debtor-in-possession financing, subject to court approval, to help fund operations during the restructuring.
A potential sale is underway
The bankruptcy isn’t necessarily the end of the restaurant chain. True Food Kitchen plans to pursue a court-supervised sale process in search of a long-term buyer or partner.
Founded in Phoenix in 2008, the brand built its reputation around health-focused, nutrient-dense food. Oprah Winfrey remains a minority investor in the company, although she is no longer involved in its daily operations.
For now, the company says its remaining 34 restaurants remain open as it works through the bankruptcy process and searches for a path forward.
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