Oprah Winfrey-backed True Food Kitchen files for Chapter 11 bankruptcy
Fox Business • • business
Key Points:
- True Food Kitchen, backed by Oprah Winfrey, filed for Chapter 11 bankruptcy protection due to management issues and unsuccessful expansion efforts, closing 12 locations and leaving 34 open across 14 states.
- Financial documents reveal the company had only $1.6 million in unrestricted cash at filing, enough to cover operations for about two weeks, with $42.1 million in funded debt obligations.
- Management turnover, failed experiments during the pandemic, and attempts at ghost kitchens negatively impacted the brand's health-focused mission and profitability, according to the Chief Restructuring Officer.
- Oprah Winfrey remains a minority investor but is no longer on the board or involved in daily operations; the current CEO views bankruptcy as a way to simplify the business and strengthen the brand.
- The company secured a $20 million financing commitment to support operations during bankruptcy and is seeking a long-term partner to help the brand's future growth.
