KEY TAKEAWAYS:
True Food Kitchen permanently closed its Warehouse District restaurant Oct. 4.
The New Orleans location was among 12 restaurants closed as part of a restructuring.
The company filed for Chapter 11 bankruptcy protection and plans a court-supervised sale process.
True Food Kitchen secured a commitment for about $20 million in bankruptcy financing, subject to court approval.
True Food Kitchen has permanently closed its New Orleans restaurant in the Warehouse District as the health-focused restaurant company begins a Chapter 11 bankruptcy restructuring.
The restaurant at 801 St. Charles Ave. was one of 12 True Food Kitchen locations that closed Oct. 4.
True Food Kitchen opened at the corner of Julia and St. Charles Streets in September 2019. Other closures occurred in California, Florida, Illinois, Maryland, New Jersey, New York, Ohio and Virginia. The company said its remaining 34 restaurants across 14 states will continue operating.
True Food Kitchen filed for voluntary Chapter 11 bankruptcy protection Oct. 5 in the U.S. Bankruptcy Court for the Southern District of Texas. CEO Jeff Chandler said in a press release that the restructuring is intended to strengthen the company’s finances, reduce costs, optimize its restaurant portfolio and position the brand for long-term growth.
“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,” Chandler said. “We are confident this step will help us build a stronger True Food Kitchen for the future.”
True Food Kitchen was founded in Phoenix in 2008. Media mogul Oprah Winfrey became an investor in the company in 2018 and joined its board of directors while also serving as a lifestyle and marketing consultant to the brand.
The company plans to pursue a court-supervised sale process aimed at finding a long-term partner with the financial resources and strategic alignment to support the brand. Any proposed transaction would require court approval. True Food Kitchen has also secured a commitment for about $20 million in debtor-in-possession financing from HumanCo TFK IV, subject to court approval. Combined with cash generated from operations, the financing is expected to provide liquidity as the company moves through the bankruptcy and sale processes.
The company said the restaurant closures were part of the broader restructuring and acknowledged the impact on affected employees.
“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 said. “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.”
Dining and Cooking