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True Meals Kitchen, a health-focused restaurant chain backed by Oprah Winfrey, has filed for Chapter 11 chapter after closing a dozen eating places.
The Arizona-based chain filed for chapter safety Sunday and stated affected eating places served their ultimate clients that day, in line with a information launch. The closures depart 34 True Meals Kitchen places working throughout 14 states.
True Meals Kitchen was based in 2008 by restaurateur Sam Fox and integrative medication physician Dr. Andrew Weil. The corporate constructed its model round health-conscious meals, together with salads, grain bowls, pizzas, sandwiches and different dishes made with an emphasis on nutrient-dense components.
Winfrey invested within the firm in 2018 and joined its board of administrators. She stays a “minority investor,” however now not sits on the board and isn’t concerned within the restaurant chain’s day-to-day operations, a spokesperson for True Meals Kitchen informed Enterprise Insider Monday.
The Chapter 11 submitting provides True Meals Kitchen an opportunity to “strengthen its monetary basis, optimize its restaurant footprint and value construction, and speed up ongoing operational enhancements,” in line with an organization information launch.
The chain has additionally secured a monetary dedication for about $20 million to assist hold its eating places operating through the chapter, pending courtroom approval.
“This course of is the perfect path ahead to simplify the enterprise and deal with what we do finest: delivering craveable, health-forward meals and real hospitality,” CEO Jeff Chandler stated in an announcement. “We’re assured this step will assist us construct a stronger True Meals Kitchen for the longer term.”
The closures embody eating places in California, Florida, Illinois, Louisiana, Maryland, New Jersey, New York, Ohio and Virginia. The shuttered places, as confirmed by Fox Enterprise, are:
True Meals Kitchen stated its monetary troubles had been tied to about $42 million in debt, frequent administration adjustments and the fallout from the COVID-19 pandemic, in line with Chapter 11 courtroom filings obtained by Enterprise Insider.
The corporate stated its speedy progress additionally introduced operational issues, together with shifting growth plans, adjustments to its menu and investments in new ideas that in the end did not work out.
Whereas many places stay worthwhile, others have struggled with low buyer visitors and altering native markets, hurting the chain’s income, the docs reportedly state.
