True Food Kitchen files for Chapter 11 bankruptcy and closes 12 locations
Health-focused restaurant chain True Food Kitchen, backed by Oprah Winfrey, filed for Chapter 11 bankruptcy and shut down 12 restaurants across nine states, leaving 34 locations still operating.
True Food Kitchen, a health-oriented restaurant chain founded in 2008, filed for Chapter 11 bankruptcy protection on Sunday and closed 12 of its outlets that day. The closures affect sites in California, Florida, Illinois, Louisiana, Maryland, New Jersey, New York, Ohio and Virginia, reducing the chain’s footprint to 34 locations in 14 states.
The company, which was partially financed by Oprah Winfrey in 2018, said the filing will allow it to strengthen its financial foundation, optimize its restaurant footprint and cost structure, and accelerate operational improvements. It has secured a financial commitment of about $20 million to maintain operations during the bankruptcy, pending court approval.
"This process is the best path forward to simplify the business and focus on what we do best: delivering health-forward food and genuine hospitality," CEO Jeff Chandler said.
Court filings indicate the chain faces roughly $42 million in debt, frequent management changes and lingering effects from the COVID-19 pandemic. Rapid expansion also created operational challenges, including shifting growth plans, menu changes and investments in new concepts that did not succeed. While some locations remain profitable, others have experienced low traffic and shifting local market conditions, impacting overall revenue.