Scottsdale, Ariz. — True Food Kitchen has filed for voluntary Chapter 11 relief in the U.S. Bankruptcy Court for the Southern District of Texas. In connection with the restructuring, True Food Kitchen has closed 12 restaurants as of Oct. 4. The company’s remaining 34 restaurants across 14 states are open and serving guests as usual.
The company intends to use the Chapter 11 process to strengthen its financial foundation, optimize its restaurant footprint and cost structure and accelerate ongoing operational improvements.
“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,” says Jeff Chandler, chief executive officer of True Food Kitchen. “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. We are confident this step will help us build a stronger True Food Kitchen for the future.”
As part of the Chapter 11 process, True Food Kitchen 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. Any proposed transaction will be subject to court approval and other customary conditions.
The company has secured a commitment for approximately $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.
Reed Smith is serving as legal counsel to True Food Kitchen. Teneo is serving as financial advisor and strategic communications advisor, with Nathan Cook of Teneo serving as chief restructuring officer. SOLIC Capital is serving as investment banker. Gordon Brothers is serving as real estate advisor.
True Food Kitchen was founded in Phoenix in 2008.
SOURCE: True Food Kitchen