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True Food Kitchen Files Chapter 11, Closes 12 Locations Despite Oprah Backing

Summarized October 6, 2026
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True Food Kitchen, the health-focused restaurant chain backed by Oprah Winfrey and former Starbucks CEO Howard Schultz, has filed for Chapter 11 bankruptcy protection in a Texas court, simultaneously shuttering 12 of its locations. The Phoenix-founded chain is now pursuing a court-supervised sale of the business as part of its restructuring, leaving it with 34 remaining locations across 14 states — all of which continue to operate normally.

Court filings reveal the company is carrying roughly $42 million in debt. The chain blames a combination of COVID-19 fallout and chronic management instability for its collapse. Successive leadership teams repeatedly shifted expansion strategy, brand direction, and menu offerings — a revolving-door dynamic that sent capital into markets and product lines that proved incompatible with the company's core anti-inflammatory, health-forward identity.

Founded in 2008 by wellness author Andrew Weil and restaurateur Sam Fox, True Food Kitchen built its reputation around nutritious, anti-inflammatory cuisine. It attracted high-profile investors after spinning off from Fox's restaurant group in 2017: Winfrey made an undisclosed equity stake in 2018 and joined the board, citing her enthusiasm for the concept. She has since departed the board but remains a minority investor.

While some locations remain profitable, others have suffered from poor foot and vehicle traffic, plus shifting local demographics. CEO Jeff Chandler framed the bankruptcy as a strategic reset, arguing the restructuring will allow the company to concentrate on its culinary core rather than the sprawling, ultimately unsuccessful side ventures that drained resources. Whether a buyer emerges to take the brand forward remains to be seen.

Key Takeaways

  • Chapter 11 filed in Texas; 12 restaurants closed immediately
  • $42 million in debt cited in court filings
  • 34 locations across 14 states remain open
  • Management turnover blamed alongside COVID-19 impacts
  • Oprah still a minority investor, no longer on board
  • Court-supervised sale of business now underway
Read original article at Businessinsider

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