Scottsdale-based True Food Kitchen has filed for Chapter 11 bankruptcy protection, listing roughly $42.1 million in debt in court filings. The health-focused chain was founded in Phoenix in 2008 by restaurateur Sam Fox and Dr. Andrew Weil.
Twelve restaurants served their last meals Sunday, including several in Southern California, plus locations in Maryland and New York. The remaining 34, spread across 14 states, are open as usual.
Arizona diners can relax: the Phoenix, Scottsdale and Tucson restaurants all survived the cut.
The company is pursuing a court-supervised sale and has lined up about $20 million in financing to keep operating in the meantime. It has also asked the court for permission to keep paying employees and maintain guest programs.
CEO Jeff Chandler called the process the best way to simplify the business. In court filings, the chief restructuring officer blamed heavy management turnover, shifting strategy, failed concepts outside the core menu, and pandemic fallout.
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