True Food Kitchen announced that it and certain affiliates have filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”).
The Company intends to use the Chapter 11 process to strengthen its financial foundation, optimize its restaurant footprint and cost structure, and accelerate ongoing operational improvements.
“True Food Kitchen is a pioneering brand with a distinctive position in wellness-driven dining, a loyal community of guests, and a mission that is more relevant than ever,” said Jeff Chandler, Chief Executive Officer of True Food Kitchen. “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. We are confident this step will help us build a stronger True Food Kitchen for the future.”
In connection with the restructuring, True Food Kitchen has closed 12 restaurants, with their final day of service on Sunday, October 4. The Company’s remaining 34 restaurants across 14 states are open and serving guests as usual.
Chandler continued, “We know these decisions are especially hard on the team members affected, and we are deeply grateful for their contributions to True Food Kitchen and their communities. 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.”
As part of the Chapter 11 process, True Food Kitchen will pursue a Court-supervised sale process with the goal of identifying a long-term partner with the resources and mission alignment to support the brand’s future. Any proposed transaction will be subject to Court approval and other customary conditions.
The Company has secured a commitment for approximately $20 million in debtor-in-possession financing from HumanCo TFK IV, subject to Court approval. Together with cash generated from operations, the financing is expected to provide liquidity to support the business through the Chapter 11 and sale processes.
True Food Kitchen has also filed customary “First Day” motions seeking Court approval to enable continued operations during the Chapter 11 process, including paying employee wages and benefits, maintaining certain guest programs and continuing to work with vendors and other business partners.
