True Food Kitchen has filed for Chapter 11 bankruptcy, and the move comes with real costs attached. The Scottsdale, Arizona-based casual-dining chain closed 12 of its restaurants as part of the voluntary restructuring, which amounts to nearly one-quarter of its locations. The remaining 34 restaurants will continue operating while the proceedings play out.
The company secured $20 million in financing from investor and holding company HumanCo to keep things running during the bankruptcy. That money will cover employee wages and benefits, keep vendor relationships intact, and maintain customer programming.
What the Bankruptcy Case Says
The filing was made in the Southern District of Texas on Oct. 1. In the bankruptcy case, the company states its goal is to “strengthen its financial foundation, optimize its restaurant footprint and cost structure, and accelerate ongoing operational improvements.”
Beyond those goals, the company is also actively seeking a new owner. That pursuit will happen through a “court supervised sale process.” The company wants the sale to happen alongside the bankruptcy rather than waiting for it to end.
Sales Slipped Last Year
Before the bankruptcy filing, True Food Kitchen had its first year of negative sales in 2025. Systemwide sales declined by 0.7%. The company also closed an underperforming restaurant for the first time last year.
Sales peaked in 2024 at $314 million, then contracted to $312 million in 2025, according to Technomic data.
Leadership Shakeup
In July, True Food Kitchen hired ex-Hopdoddy CEO Jeff Chandler to head the company. He succeeded Jim Dunn, who served as interim CEO until January 2026 after previous CEO John Williams’ resignation in December 2024.
Chandler’s arrival came at a difficult moment for the chain. The sales decline and the restaurant closure were both new events for the company, and the leadership transition followed shortly after.
What Chandler Said
“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,” True Food Kitchen CEO Jeff Chandler said in a statement.
The statement frames the bankruptcy as a necessary step rather than a defeat. Chandler points to the company’s core strengths — craveable food, a health-forward menu, and genuine hospitality — as reasons the chain can survive this round.
Why the Sale Matters
The court-supervised sale process is the clearest sign that True Food Kitchen does not see itself as a permanent fixture. A new owner could bring fresh capital, a new vision, or simply a cleaner balance sheet.
For customers, the immediate change is visible: 12 restaurants are gone, and the remaining 34 are carrying on. For employees, the HumanCo funding means wages and benefits are covered through the bankruptcy process.
What Comes Next
The court-supervised sale process will determine whether True Food Kitchen stays independent or gets sold to another operator. The bankruptcy restructuring will address the restaurant footprint and cost structure.
The company has said the process is the best path forward. Whether that proves true depends on the sale outcome.
Key Facts Box
- Filing: Chapter 11 bankruptcy, voluntary restructuring
- Date: Filed Oct. 1 in the Southern District of Texas
- Restaurants closed: 12, nearly one-quarter of locations
- Remaining locations: 34 operating through the proceedings
- Sales peak: $314 million in 2024
- Sales 2025: $312 million, down 0.7%
- Financing: $20 million from HumanCo
- CEO: Jeff Chandler, formerly of Hopdoddy
- Previous CEOs: John Williams (resigned Dec. 2024), Jim Dunn (interim CEO Jan. 2026)
The Bottom Line
True Food Kitchen is in a familiar position for a casual-dining chain: sales slipped, leadership changed hands, and the company had to act fast. The bankruptcy filing is the result of that pressure.
Whether the company survives this round depends on the sale process. Chandler’s statement suggests confidence in the brand, but the numbers tell a different story: sales fell for the first time ever in 2025, and the company just closed nearly one-quarter of its locations.
The chain’s future is tied to finding a buyer willing to take over the remaining restaurants and the debt that comes with them. That is a narrow path, and the next few months will show whether True Food Kitchen can clear it.
Source material: “True Food Kitchen files for Chapter 11 bankruptcy,” Nation's Restaurant News.
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