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True Food Kitchen files for Chapter 11, closes 12 restaurants

True Food Kitchen files for Chapter 11, closes 12 restaurants

Money Moves

Oprah-backed health-focused chain wins final court approval for its bankruptcy requests as it seeks a buyer

October 27th, 2026: Court Grants Final Approval for Second-Day Relief

Overview

Updated Oct 29

True Food Kitchen filed for Chapter 11 on October 4 and closed 12 of its 46 restaurants that day. The remaining 34 locations in 14 states are open while the company looks for a buyer.

Judge Christopher M. Lopez granted the chain's second-day relief requests on a final basis at an October 27 hearing in Houston, Law360 reported. That hearing was also set to consider final approval of the last $15 million of a $20 million loan from HumanCo TFK IV, plus the rules for bidding on the business. Bids are due December 10, with an auction December 15 and a sale hearing December 21 if the schedule holds.

Why it matters

If the sale fails, 34 restaurants close and the health-focused fast-casual segment loses one of its most visible national brands.

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Key Indicators

$20M
Debtor-in-possession financing
Committed by HumanCo TFK IV. The court authorized $5 million on an interim basis October 6; the remaining $15 million was on the October 27 final hearing agenda.
34
Restaurants still open
Locations operating across 14 states after 12 closed on October 4.

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People Involved

JC
Jeff Chandler
Chief Executive Officer
Leading the company through Chapter 11
 Oprah Winfrey
Oprah Winfrey
Investor
Investor in the chain
SF
Sam Fox
Former owner
His restaurant group owned the chain before the 2017 spinoff

Organizations Involved

True Food Kitchen
True Food Kitchen
Restaurant chain
Operating 34 locations under Chapter 11

Health-focused fast-casual restaurant chain with 34 open locations across 14 states.
HU
HumanCo TFK IV
Investment firm
Debtor-in-possession lender

Provided $20 million in debtor-in-possession financing to fund True Food Kitchen through Chapter 11.
BA
FRC Balance, LLC
Legal entity
Debtor in Chapter 11

The corporate entity behind True Food Kitchen.

Timeline

2017 October 2026

8 events Latest: October 27th, 2026 · 2 weeks ago
Tap a bar to jump to that date

  1. Court Grants Final Approval for Second-Day Relief

    Latest Legal

    Judge Christopher M. Lopez approved the company's requests on a final basis at a hearing in the Southern District of Texas, including motions to pay prepetition claims. Final approval of the remaining $15 million in financing was on the same agenda.

  2. State Labor Notice Lists 89 Hackensack Layoffs

    Legal

    FRC Balance filed a notice with New Jersey's Department of Labor and Workforce Development listing 89 Hackensack restaurant workers due to be laid off January 3, 2027, after the chain closed both of its New Jersey restaurants, NJ.com reported.

  3. Court Approves Interim DIP Financing, Sets Final Hearing

    Legal

    Bankruptcy court granted interim approval for True Food Kitchen to borrow up to $5 million from HumanCo TFK IV. The final financing hearing and bidding procedure approval are scheduled for October 27.

  4. Company Files Bidding Procedures and Lease Rejection Motions

    Legal

    Motions seek court approval for three outcomes: an asset sale, a sale through a Chapter 11 plan, or an equity investment. A separate motion requests rejection of leases for the 12 closed restaurants and the Scottsdale headquarters, effective October 8. The proposed schedule sets a December 10 bid deadline, a December 15 auction and a December 21 sale hearing.

  5. Announces restructuring, secures DIP financing

    Statement

    Company announces Chapter 11 publicly. HumanCo TFK IV commits $20 million in debtor-in-possession financing.

  6. Files Chapter 11, closes 12 restaurants

    Legal

    Petition filed in Southern District of Texas, Houston Division. Twelve locations close the same day.

  7. Jeff Chandler hired as CEO

    Leadership

    New CEO brought in to address financial distress and management turnover.

  8. True Food Kitchen spins off from Sam Fox restaurant group

    Corporate

    The chain becomes FRC Balance, LLC with 20 locations.

Scenarios

1

True Food Kitchen sold to new owner

Likely Resolves by Q2 2027

Discussed by: Court filings describe a Section 363 sale as the primary path; HumanCo TFK IV's DIP loan signals lender interest in the brand

The court-supervised sale process attracts a buyer for the 34 open restaurants and the brand. HumanCo TFK IV, which provided the $20 million DIP loan, is a likely bidder. The buyer takes over operations and the chain continues under new ownership.

2

No buyer found, True Food Kitchen liquidates

Possible Resolves by Q2 2027

Discussed by: The company's court filing says liquidity was insufficient to fund operations outside bankruptcy; a failed sale would force piecemeal asset sales

The sale process fails to attract a qualified buyer. The court approves a liquidation plan or converts the case to Chapter 7. Restaurant leases, equipment, and the brand's intellectual property are sold separately.

3

Recapitalization keeps True Food Kitchen independent

Possible Resolves by Q2 2027

Discussed by: The company's announcement lists recapitalization alongside a sale as possible outcomes

Existing stakeholders, possibly including HumanCo, inject new capital. The company emerges from Chapter 11 with a restructured balance sheet and a smaller footprint of 34 restaurants.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2023

Boston Market bankruptcy (2023)

Boston Market, the rotisserie chicken chain, filed for Chapter 11 in 2023 after years of closures and supplier lawsuits. The company had closed hundreds of locations and faced claims from landlords and vendors.

Then

The chain continued to shrink and sought a buyer for its remaining assets.

Now

The bankruptcy marked the end of a brand that once dominated fast-casual rotisserie chicken.

Why this matters now

Like True Food Kitchen, Boston Market expanded aggressively, then found its footprint too large for demand. Both chains entered Chapter 11 with a plan to shrink and sell.

October 2020

Ruby Tuesday bankruptcy (2020)

Ruby Tuesday, a casual dining chain, filed for Chapter 11 in October 2020 during the pandemic. The company closed a large share of its restaurants and sold the remaining locations to a private equity firm.

Then

The chain emerged from bankruptcy under new ownership with a much smaller footprint.

Now

The sale showed how pandemic-era distress reshaped casual dining, with chains shrinking to survive.

Why this matters now

Ruby Tuesday's Chapter 11 and sale to a private equity buyer is a template for what True Food Kitchen is attempting: shrink, restructure, and find a new owner.

Sources

(18)
+12
PR Newswire True Food Kitchen Bloomberg Law U.S. Bankruptcy Court, Southern District of Texas (via Stretto) Fox Business Restaurant Business Online Restaurant Association QSR Pro Petition 11 Bondoro Los Angeles Times Rolling Out Restaurant Dive Fast Casual Law360 Bankruptcy Authority ElevenFlo Research Virginia Hospitality News NJ.com