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True Food Kitchen, a health-focused restaurant chain backed by Oprah Winfrey, has filed for Chapter 11 bankruptcy after closing a dozen restaurants.
The Arizona-based chain filed for bankruptcy protection Sunday and said affected restaurants served their final customers that day, according to a news release. The closures leave 34 True Food Kitchen locations operating across 14 states.
True Food Kitchen was founded in 2008 by restaurateur Sam Fox and integrative medicine doctor Dr. Andrew Weil. The company built its brand around health-conscious food, including salads, grain bowls, pizzas, sandwiches and other dishes made with an emphasis on nutrient-dense ingredients.
Winfrey invested in the company in 2018 and joined its board of directors. She remains a “minority investor,” but no longer sits on the board and is not involved in the restaurant chain’s day-to-day operations, a spokesperson for True Food Kitchen told Business Insider Monday.
The Chapter 11 filing gives True Food Kitchen a chance to “strengthen its financial foundation, optimize its restaurant footprint and cost structure, and accelerate ongoing operational improvements,” according to a company news release.
The chain has also secured a financial commitment for about $20 million to help keep its restaurants running 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 craveable, health-forward food and genuine hospitality,” CEO Jeff Chandler said in a statement. “We are confident this step will help us build a stronger True Food Kitchen for the future.”
The closures include restaurants in California, Florida, Illinois, Louisiana, Maryland, New Jersey, New York, Ohio and Virginia. The shuttered locations, as confirmed by Fox Business, are:
- Century City, California
- El Segundo, California
- San Diego, California
- Miami, Florida
- Chicago, Illinois
- New Orleans, Louisiana
- Bethesda, Maryland
- Edison, New Jersey
- Hackensack, New Jersey
- Garden City, New York
- Columbus, Ohio
- Reston, Virginia.
True Food Kitchen said its financial troubles were tied to about $42 million in debt, frequent management changes and the fallout from the COVID-19 pandemic, according to Chapter 11 court filings obtained by Business Insider.
The company said its rapid growth also brought operational problems, including shifting expansion plans, changes to its menu and investments in new concepts that ultimately didn’t work out.
While many locations remain profitable, others have struggled with low customer traffic and changing local markets, hurting the chain’s revenue, the docs reportedly state.
