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Restaurant chain backed by Oprah files for bankruptcy and abruptly closes 12 restaurants
The Independent • • business
Key Points:
- True Food Kitchen, a health-focused restaurant chain backed by Oprah Winfrey, filed for Chapter 11 bankruptcy after closing a dozen locations, leaving 34 restaurants operating across 14 states.
- The company cited about $42 million in debt, frequent management changes, the COVID-19 pandemic's impact, and operational challenges from rapid growth and shifting strategies as reasons for its financial difficulties.
- Oprah Winfrey, who invested in 2018 and joined the board, remains a minority investor but no longer participates in daily operations or board activities.
- True Food Kitchen secured a $20 million financial commitment to maintain operations during bankruptcy proceedings, aiming to restructure and focus on its core health-forward food offerings.
- The closures affected restaurants in multiple states, including California, Florida, Illinois, and New York, as the company seeks to optimize its footprint and improve financial stability.
