Bankruptcy Filing and Immediate Impact
True Food Kitchen, a casual-dining chain headquartered in Scottsdale, Arizona, has filed for Chapter 11 bankruptcy. The voluntary restructuring, filed in the Southern District of Texas on Oct. 1, led the company to close 12 restaurants, representing nearly one-quarter of its locations. The remaining 34 restaurants will continue to operate throughout the proceedings.[S1][S2]
The business indicated it will leverage the proceedings to reinforce its financial base, refine its restaurant portfolio and expense framework, and speed up continuous operational enhancements. In connection with the restructuring, True Food Kitchen is additionally pursuing a new proprietor via a sale overseen by the court.[S1]
Financial Backing and Leadership Changes
To keep operating while in bankruptcy, True Food Kitchen obtained $20 million in funding from HumanCo, an investor and holding company. This money is intended to pay for employee salaries and benefits, preserve ties with suppliers, and sustain customer initiatives.[S1]
In July, the business brought in Jeff Chandler, the former chief executive of Hopdoddy, to take the helm. He took over from Jim Dunn, who had been serving as interim CEO through January 2026, following the resignation of prior CEO John Williams in December 2024.[S1]
Sales Decline and Path Forward
Prior to filing for bankruptcy, True Food Kitchen saw its first year of declining sales in 2025. Systemwide sales fell 0.7%, and the company shut down a poorly performing location for the first time last year. Sales had reached a high of $314 million in 2024 before dropping to $312 million in 2025, per Technomic data.[S1]
