True Food Kitchen files for Chapter 11 bankruptcy
The chain plans to sell itself to a long-term partner that shares a similar brand mindset that can set it up for long-term success.
Oprah Winfrey-backed health-focused restaurant chain True Food Kitchen has filed for Chapter 11 bankruptcy protection, citing management turnover and strategy shifts, as well as the impact of the COVID-19 pandemic, according to court documents. The Arizona-based chain has closed 12 of its 34 remaining locations, with the rest continuing to operate normally.
Winfrey, a co-founder and investor in the company since 2018, has since been removed from the board, though she remains a minority shareholder. The bankruptcy filing highlights the challenges True Food Kitchen has faced, including frequent changes in leadership, unsuccessful expansions, and struggles with fluctuating market forces and demographics.
Despite these obstacles, some of the company's outlets have remained profitable. CEO Jeff Chandler expressed confidence that the bankruptcy filing will help the business refocus on its core mission of providing healthy, craveable food and exceptional hospitality.
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