Oprah-backed True Food Kitchen files for bankruptcy, closes 12 restaurants

True Food Kitchen, the health-focused restaurant chain backed by American media mogul Oprah Winfrey, has filed for Chapter 11 bankruptcy protection after management turnover, failed expansion efforts and pandemic-era experiments weakened the health-focused restaurant chain. The company closed 12 locations as part of a restructuring aimed at simplifying its business and finding a buyer for the remaining operations.

Bankruptcy exposes financial strain 

True Food Kitchen entered bankruptcy with about $1.6 million in unrestricted cash, enough to fund operations and bankruptcy-related expenses for roughly two weeks without additional financing, according to financial adviser George N. Koutsonicolis. The company reported approximately $42.1 million in funded debt obligations when it filed. 

The company has 34 restaurants remaining across 14 states. The closed locations include restaurants in California, Florida, Illinois, Louisiana, Maryland, New Jersey, New York, Ohio and Virginia, according to court documents and a company statement confirmed to FOX Business.

Expansion bets backfire 

Chief Restructuring Officer Nathan Cook said management turnover led to repeated changes in expansion strategy, brand direction and menu offerings. Successive leadership teams also invested in new products and restaurant concepts that failed to gain traction and, in some cases, moved the chain away from its health-focused identity. 

During the pandemic, True Food Kitchen converted some restaurants into ghost kitchens and opened a separate delivery-only kitchen as dining-room traffic declined. Cook said those initiatives created staffing and service challenges and ultimately failed to deliver the desired results as the company struggled with changing customer patterns.

Winfrey remains an investor 

Winfrey made a significant equity investment in True Food Kitchen in 2018, when the company was preparing to expand aggressively. She remains a minority investor but does not have a representative on the board and is not involved in day-to-day management, according to True Food Kitchen. 

At the time of her investment, then-CEO Christine Barone said Winfrey’s backing would support the company’s growth plans, which included doubling the restaurant footprint within three years. The investment gave the brand a high-profile advocate as it sought to build a national presence around health-conscious dining.

New CEO seeks reset 

CEO Jeff Chandler, who took over in July, described bankruptcy as the best route to simplify the business and concentrate on its core restaurant offering. Before filing, the company cut corporate staff, renegotiated vendor agreements and sought changes to restaurant leases as management worked to reduce costs. 

True Food Kitchen secured a commitment for about $20 million in financing from HumanCo TFK IV, subject to court approval. The funding is expected to support restaurant operations and the sale process while the company searches for a long-term partner to help revive the brand.

Remaining restaurants stay open 

The company is asking the bankruptcy court to allow it to continue paying employee wages and benefits, maintain certain customer programs and work with vendors during the restructuring. Management acknowledged the impact of the closures on employees and said affected workers would receive information about available resources and next steps. 

Founded in Phoenix in 2008, True Food Kitchen built its brand around nutritious meals, thoughtfully sourced ingredients and a wellness-oriented dining experience. The company said its remaining restaurants are open and serving customers as usual while management works through the restructuring and explores a sale.

Winfrey builds wealth across diverse businesses

Winfrey remains a prominent investor across media, entertainment, wellness and consumer businesses. She founded Harpo Productions, launched OWN and previously held investments in companies including WeightWatchers and Oatly. Forbes has estimated her net worth at about $3.4 billion, reflecting the scale of her broader business interests and investments.

Her True Food Kitchen investment remains in place, but the restaurant chain’s future will now depend on a buyer and a successful court-supervised restructuring.