True Food Kitchen Files for Chapter 11 Bankruptcy and Secures $20M DIP Financing

The prominent American health-focused restaurant chain True Food Kitchen has officially filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas. This dramatic move aims to curtail unprofitable operations, restructure its debts, and facilitate a controlled court-supervised sale process to secure a new financial partner.

Restaurant Closures and Ongoing Operations

As part of the restructuring initiative, the company shuttered 12 unprofitable branches across the United States on October 4. Among the closed locations are two prominent and popular spots in Los Angeles County: the branch at the Westfield Century City mall and the location at The Point shopping center in El Segundo. Despite these closures, the chain continues to operate 34 restaurants across 14 states while navigating the legal proceedings.

"True Food Kitchen is a pioneering brand with a unique positioning in the wellness-focused restaurant world, featuring a loyal customer base and a mission that is more relevant today than ever," stated CEO Jeff Chandler. "The current process is the best path for efficiency and for focusing on what we do best: serving healthy, delicious, and high-quality food alongside genuine hospitality."

Emergency Financing and Background

To ensure the uninterrupted operation of its remaining restaurants during the sale and restructuring period, the chain secured a commitment for approximately $20 million in debtor-in-possession (DIP) financing from the investor group HumanCo TFK IV, subject to court approval. Company management noted that the injection of new capital, combined with ongoing restaurant revenues, will maintain full operational routine.

• Founded in 2008 in Phoenix, Arizona.

• Built its reputation on a nutrient-rich, anti-inflammatory menu.

• Relies strictly on seasonal ingredients.

True Food Kitchen remains committed to finding a viable financial solution to sustain its long-term business model in the competitive culinary market.