True Food Kitchen seeks Chapter 11 protection and will shutter 12 locations
The Scottsdale-based restaurant chain True Food Kitchen filed for Chapter 11 bankruptcy, citing $42.1 million in debt, and announced plans to close 12 of its 46 restaurants while keeping the remainder open.
True Food Kitchen, a restaurant chain founded by Sam Fox and later separated from Fox Restaurant Concepts, filed for Chapter 11 bankruptcy protection on Oct. 4 in the U.S. Bankruptcy Court for the Southern District of Texas. The filing indicates the company carries roughly $42.1 million in debt and includes nine affiliated entities under the True Food umbrella.
As part of its restructuring strategy, the chain intends to close 12 of its restaurants. The remaining 34 locations, spread across 14 states, will continue operating as usual. True Food Kitchen also maintains a test kitchen at its headquarters on E. Raintree Drive in Scottsdale.
"Our goal is to emerge from bankruptcy as a stronger, more sustainable business," a company spokesperson said.