True Food Kitchen – an Arizona-based casual dining chain known for health-conscious food and cocktails, including vegan options – has filed for Chapter 11 bankruptcy.
As part of its voluntary restructuring, the company has shuttered 12 of its locations. Its remaining 22 locations across 14 states will continue to operate during proceedings, National Restaurant News reported.
The last day of service for those closed restaurants was Sunday.
“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,” Jeff Chandler, Chief Executive Officer of True Food Kitchen, said in a press release. “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.”
The company plans to use the Chapter 11 proceedings to cut costs, reduce its number of locations and improve operations, according to the filing, which was filed in the Southern District of Texas on Oct. 1.
The chain is also seeking a new owner through a “court-supervised sale process” that supports the brand’s future. Any proposed transaction has to be court-approved.
“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, Chandler continued. “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.”
True Food Kitchen secured $20 million in debtor-in-possession financing from holding company HumanCo TFK IV to keep the chain operational during the bankruptcy process.
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Dining and Cooking