True Food Kitchen, whose backers include Oprah Winfrey and former Starbucks CEO Howard Schultz, has filed for Chapter 11 bankruptcy protection.
The company plans to use the process to strengthen its financial foundation and optimize its restaurant footprint.
As part of the restructuring, True Food Kitchen has closed 12 restaurants. The remaining 34 restaurants across 14 states are open and serving guests as usual.
The chain will pursue a sale process to find a long-term partner with the suitable resources that can support its future. Any proposed transaction will be subject to court approval and other customary conditions.
The company has also secured a commitment for approximately $20 million in debtor-in-possession financing from HumanCo TFK IV, which will provide liquidity to support the business through the Chapter 11 and sale processes.
“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,” said CEO Jeff Chandler.
“We are confident this step will help us build a stronger True Food Kitchen for the future.
“We are committed to approaching this difficult moment with care and respect, and we will share information on resources and next steps with affected team members,” Chandler added.
Founded in Phoenix in 2008, True Food Kitchen pioneered wellness-driven dining by serving nutrient-dense food made with real ingredients, culinary technique and big flavor.
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