True Food Kitchen Files Chapter 11, Closes 12 Locations, Seeks Buyer

True Food Kitchen filed for Chapter 11 bankruptcy protection on Sunday, October 4, 2026, and closed 12 restaurants, leaving 34 locations operating across 14 states as the Scottsdale, Arizona-based chain pursues a court-supervised sale. The company entered bankruptcy with roughly $1.6 million in unrestricted cash — enough for about two weeks of operations without new financing — and has secured a commitment for approximately $20 million in debtor-in-possession financing from HumanCo TFK IV, subject to court approval. True Food Kitchen listed about $42.1 million in funded debt. Systemwide sales fell 0.7% in 2025, the chain's first negative year, after peaking at $314 million in 2024. Chief Restructuring Officer Nathan Cook cited high executive turnover and pandemic-era pivots to ghost kitchens and standalone delivery as causes. Oprah Winfrey, an investor since 2018, retains a minority stake with no board seat. The case was filed in the U.S. Bankruptcy Court for the Southern District of Texas.