Article originally posted on CoStar on Oct 6 2026

True Food Kitchen said it has filed for bankruptcy protection, already closed a dozen restaurants and is seeking a buyer or partner for the health-conscious chain.

The Scottsdale, Arizona-based company, now with 34 remaining restaurants across 14 states, initiated voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas. In addition to restructuring and seeking to optimize its brick-and-mortar footprint, True Kitchen said it will “pursue a court-supervised sale process with the goal of identifying a long-term partner with the resources and mission alignment to support the brand’s future.”

Its problems date back to the pandemic, it stated in an affidavit. It shuttered 12 locations on Sunday.

Any proposed transaction will be subject to court approval and other customary conditions, True Kitchen said in a statement on Monday. The company also said it has entered into an agreement to assign some of its unexpired leases to other parties.

The chain, founded in Phoenix in 2008, counts Oprah Winfrey as one of its original backers, and she holds a minority stake in the company, according to published reports. The restaurant concept — to serve up nutrient-dense food made with real ingredients — was conceived by wellness author Dr. Andrew Weil and restaurateur Sam Fox.

“True Food Kitchen is a pioneering brand with a distinctive position in wellness-driven dining, a loyal community of guests, and a mission that is more relevant than ever,” CEO Jeff Chandler said in a statement. “This process is the best path forward to simplify the business and focus on what we do best: delivering craveable, health-forward food and genuine hospitality.”

The company has secured a commitment for about $20 million in debtor-in-possession financing from HumanCo TFK IV, subject to court approval. Together with cash generated from operations, the financing is expected to provide liquidity to support the business through the Chapter 11 and sale processes.

Nathan Cook, True Kitchen’s chief restructuring officer, described the chain’s woes in an affidavit filed with the court.

“Like many restaurants, the COVID-19 pandemic materially impacted the company’s profitability and coincided with a period of the company’s growth,” he said. “To increase profitability at times when in-person dining was declining, the company used certain locations as ghost kitchens and opened one off-site kitchen for delivery service only. These tests impaired staffing and the restaurant and service experience and have since been terminated to allow the company to focus on its core customer dining experience.”

Cook added that while many of the restaurants are profitable and occupy desirable locations, several have struggled.

“Some are in areas with lower-than-anticipated foot and driving traffic, while others were impacted by changing market forces and demographics that led to steady decreases in profitability over time,” he said.

Reed Smith is serving as legal counsel to True Food Kitchen. Teneo is serving as financial adviser and strategic communications adviser, with Nathan Cook of Teneo serving as chief restructuring officer. Solic Capital is serving as investment banker, and Gordon Brothers is the real estate adviser.