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Oprah-Backed True Food Kitchen Files for Bankruptcy, Closes 12 Locations
Business Insider • • business
Key Points:
- True Food Kitchen, a health-focused restaurant chain backed by Oprah Winfrey and former Starbucks CEO Howard Schultz, has filed for Chapter 11 bankruptcy protection and is seeking a court-supervised sale of the business.
- The company closed 12 locations on the filing day, reducing its footprint to 34 restaurants across 14 states, with remaining outlets continuing operations as usual.
- True Food Kitchen cited approximately $42 million in debt, management turnover, and the impact of the COVID-19 pandemic as key factors leading to its financial struggles and bankruptcy filing.
- Operational challenges included frequent changes in expansion strategy and menu offerings under successive leadership, as well as investments outside the core market that failed to succeed.
- CEO Jeff Chandler described the bankruptcy filing as a strategic move to simplify the business and focus on delivering health-forward food, expressing confidence in building a stronger company moving forward.
