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True Food Kitchen seeks to exit leases during Chapter 11
The health food chain filed for Chapter 11 and secured a $20M loan to fund ongoing operations while it closes locations and moves to leave leases in multiple markets.
Oprah Winfrey-backed True Food Kitchen has filed for Chapter 11 bankruptcy protection and is seeking permission to exit leases nationwide, according to a Bisnow report.
The company said it secured a $20M loan to finance ongoing operations, and it has kept 34 locations open after it expanded with investor support, including Winfrey.
TrueFood closed a dozen locations on Sunday, and Bloomberg reported it is seeking lease-exit permission in markets including Bethesda, Reston, Columbus, Long Island, Miami, New Orleans, New Jersey, and Southern California.
A court filing cited by the outlet links the decline to significant management turnover and frequent changes to expansion and brand strategy, and it also points to a pandemic-era shift toward ghost kitchens.