Support from a television icon wasn’t enough to keep health food chain True Food Kitchen afloat, and it is now looking to back out of leases nationwide.
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The company filed for Chapter 11 bankruptcy protection and secured a $20M loan to finance its ongoing operations, it announced in a Monday press release. The chain has 34 locations still open after it expanded with support from investors, including Oprah Winfrey.
True Food closed a dozen locations on Sunday, it said in the release. And Bloomberg reported it is seeking permission to exit leases in Bethesda, Maryland; Reston, Virginia; Columbus, Ohio; Long Island, New York; Miami, New Orleans, New Jersey and Southern California.
It has already entered separate transactions to exit other unexpired leases, according to a court filing obtained by the outlet.
“The Company experienced significant management turnover, which resulted in frequent changes to expansion strategy, brand direction, and menu offerings,” the document says of True Food’s decline.
“Under successive leadership teams, the Company invested capital outside its core market areas and in new product lines and restaurant concepts that were ultimately unsuccessful and outside of the Company’s core mission and menu.”
The filing also cites a pandemic-era pivot toward ghost kitchens that led to a deterioration of the customer experience and a July cyclospora outbreak as aggravating factors.
CEO Jeff Chandler, who took the helm in July, said the bankruptcy will allow True Food to move forward by refocusing on its core offerings.
“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,” he said in a statement.
The company was founded in 2008. Winfrey joined the board about a decade later after dining at the location in Palo Alto, California. She is still a minority investor, Bloomberg reported.
Commercial real estate heavyweight Centerbridge Partners was previously the controlling shareholder and participated in a $100M investment round in 2022, but it is no longer involved with the chain, the spokesperson said.
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