True Food Kitchen files Chapter 11 and shuts UTC restaurant in San Diego
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True Food Kitchen files Chapter 11 and shuts UTC restaurant in San Diego

Resumen

The Arizona-based chain has entered Chapter 11 bankruptcy, closing its Westfield UTC location while keeping its Fashion Valley restaurant open.

True Food Kitchen, an Arizona-based restaurant chain, filed for Chapter 11 bankruptcy protection and announced the closure of its Westfield UTC outlet in San Diego. The restaurant ceased serving customers on Sunday, the same day the bankruptcy filing was made public. The chain will keep 34 locations in 14 states open, including its original San Diego site in the Fashion Valley shopping center.

Nathan Cook, the company’s chief restructuring officer, told the bankruptcy court that the chain suffered from “significant management turnover” and investments in concepts outside its core market that did not succeed. He added that the pandemic prompted experiments with ghost kitchens and off-site delivery operations, which failed to resolve staffing and profitability challenges.

San Diego restaurant consultant John Gordon said high rents in upscale areas and a menu that some diners find confusing contributed to the financial strain. He noted that the Fashion Valley location remains busy, likely helping it stay open.

The company said it will pursue a court-supervised sale to find a partner with resources and a mission aligned with the brand’s future.

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