Operations

True Food Kitchen files for Chapter 11, closes 12 restaurants

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October 5, 2026

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Phoenix-based True Food Kitchen filed for Chapter 11 bankruptcy protection on Oct. 4 in the U.S. Bankruptcy Court for the Southern District of Texas as it restructures its business and pursues a court-supervised sale.

The restaurant company closed 12 of its 46 locations in Chicago; Garden City, New York; and Reston, Virginia. The remaining 34 restaurants are open, according to the company.

True Food Kitchen said it has about $42 million in debt, including merchant cash advance agreements with multiple vendors, according to court documents. The company attributed its financial challenges to investments outside its core markets, capital allocated to food and beverage offerings and restaurant concepts that did not align with its original philosophy and the disruption caused by the COVID-19 pandemic. While some restaurants remain profitable, others have experienced lower foot traffic amid shifting market trends and changing demographics, the company said.

Before filing for bankruptcy, True Food Kitchen hired Jeff Chandler as CEO and worked with a consulting firm to evaluate strategic alternatives, including ways to reduce its corporate debt.

The company filed standard "First Day" motions seeking court approval to continue normal operations during the Chapter 11 process, including paying employee wages and benefits, maintaining certain guest programs and continuing relationships with vendors and other business partners. True Food also secured a commitment for approximately $20 million in debtor-in-possession financing from HumanCo TFK IV, subject to court approval. Along with cash generated from operations, the financing is expected to provide liquidity to support the business through the Chapter 11 and sale processes.

"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 in a press release. "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."