Business & Tech
True Food Kitchen Closes 12 Restaurants, Including One In NoVA
The Reston Town Center restaurant was one of 12 locations the chain closed as it entered bankruptcy. Two other NoVA locations remain open.
RESTON, VA — True Food Kitchen has closed its Reston Town Center restaurant as the health-focused chain enters Chapter 11 bankruptcy and shutters a dozen locations nationwide.
The restaurant at 11901 Democracy Drive served customers for the final time Sunday after more than five years in business, FFXnow reported.
True Food Kitchen's two other Virginia restaurants, located at Mosaic District in Merrifield and Ballston Quarter in Arlington, remain open. FFXnow reported that a company representative specifically confirmed the Merrifield restaurant remains open.
Find out what's happening in Restonfor free with the latest updates from Patch.
True Food Kitchen announced Monday that it and certain affiliates filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.
The company closed 12 of its 46 restaurants as part of the restructuring, with Sunday marking their final day of service. The remaining 34 restaurants across 14 states are continuing to operate.
Find out what's happening in Restonfor free with the latest updates from Patch.
What Led To The Bankruptcy
Court filings detailed a period of financial and operational difficulties for the restaurant chain.
True Food's chief restructuring officer said significant turnover among company leadership contributed to repeated changes in expansion plans, brand strategy and menu offerings. The COVID-19 pandemic also disrupted the company's growth, and some restaurants struggled even as other locations remained profitable.
True Food filed for bankruptcy with about $42 million in debt.
“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,” CEO Jeff Chandler said in announcing the restructuring.
What Happens Next
True Food plans to pursue a court-supervised sale aimed at finding a long-term partner for the restaurant chain.
The company has secured a commitment for approximately $20 million in debtor-in-possession financing from HumanCo TFK IV, subject to court approval. The financing, combined with money generated by its restaurants, is expected to support operations during the bankruptcy and sale process.
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