CEO Jeff Chandler described the court-supervised process as a necessary step to simplify the company’s cost structure and focus on its core health-forward menu. To maintain operations during the transition, the brand has secured $20 million in debtor-in-possession financing from HumanCo TFK IV, pending court approval.
True Food Kitchen Files for Bankruptcy and Closes 12 Locations
Twelve restaurants shuttered overnight as True Food Kitchen filed for Chapter 11 bankruptcy protection in the Southern District of Texas. The Scottsdale-based wellness dining chain, which operates 34 remaining locations across 14 states, aims to restructure its debt and find a buyer to stabilize its long-term financial future.
Management has filed motions to ensure that employee wages, benefits, and vendor payments continue without interruption. While the company prepares for a sale, it is working with legal and financial advisors, including Reed Smith and Teneo, to navigate the restructuring. Affected staff members from the 12 closed sites are being provided with transition resources as the company attempts to shed underperforming assets and secure a new ownership partner.
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