Oprah-Backed True Food Kitchen Files for Bankruptcy, Closes Multiple Locations
The health-focused restaurant chain cites $42 million in debt as it shutters 12 restaurants across the U.S., including three in California.
True Food Kitchen, a restaurant chain with celebrity backing including Oprah Winfrey, has filed for Chapter 11 bankruptcy, citing $42 million in debt. The company announced the closure of 12 locations nationwide, reducing its footprint to 34 restaurants.
Among the abruptly closed locations are stores in Century City, El Segundo, and San Diego, California. Other affected cities include Miami, Chicago, New Orleans, Bethesda, Maryland, Edison and Hackensack, New Jersey, Garden City, New York, Columbus, Ohio, and Reston, Virginia. The last day of operation for these restaurants was Sunday, October 4.
In a written statement, True Food Kitchen CEO Jeff Chandler expressed optimism about the brand's future, stating, "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 added, "We are confident this step will help us build a stronger True Food Kitchen for the future."
Founded in Arizona in 2008, True Food Kitchen gained prominence for its wellness-driven dining concept. Oprah Winfrey invested an undisclosed amount in the business in 2018 and remains a minority investor, though she does not have a board seat or management involvement, according to a spokesperson.
Four years ago, the company raised $100 million from investors including MannaTree Partners and Human Co., which is backed by Nick Jonas and Priyanka Chopra. True Food Kitchen is currently seeking a buyer with the resources and mission alignment to support the brand's continued development. The company has secured $20 million in debtor-in-possession (DIP) financing from HumanCo TFK IV to maintain liquidity during the bankruptcy and sale proceedings.
Court filings attributed the financial difficulties to several "operational challenges," including significant management turnover that led to frequent shifts in expansion strategy, brand direction, and menu offerings.