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True Food Kitchen says its remaining 34 restaurants are open and serving guests as the company moves through bankruptcy proceedings. (Getty Images \/ Getty Images)<\/p>\n
Court documents reveal how tight the financial squeeze had become. The company entered bankruptcy<\/a> with approximately $1.6 million in unrestricted cash, enough to cover operations and bankruptcy expenses for only about two weeks without access to financing and other cash, financial adviser George N. Koutsonicolis said.<\/p>\n Chief Restructuring Officer Nathan Cook pointed to management turnover, unsuccessful expansion efforts and pandemic-era experiments that hurt the dining experience.<\/p>\n CRACKER BARREL CEO OUT ON HEELS OF FAILED REBRAND THAT REMOVED UNCLE HERSCHEL LOGO, INFURIATED CUSTOMERS<\/a><\/p>\n True Food Kitchen says its remaining 34 restaurants across 14 states are open and serving customers during its bankruptcy proceedings. (Smith Collection\/Gado\/Getty Images \/ Getty Images)<\/p>\n “The Company experienced significant management turnover, which resulted in frequent changes to expansion strategy, brand direction, and menu offerings,” Cook said in a court declaration.<\/p>\n Under successive leadership teams, the chain invested in new products and restaurant concepts that were unsuccessful and strayed from its health-focused mission, Cook said.<\/p>\n RED LOBSTER BRINGS BACK ENDLESS SHRIMP AFTER PROMOTION HELPED PUSH CHAIN TOWARD BANKRUPTCY<\/a><\/p>\n The company also tried using some restaurants as ghost kitchens<\/a> and opened a separate delivery-only kitchen<\/a> as in-person dining declined during the pandemic. Those efforts hurt staffing and service and have since ended, according to Cook.<\/p>\n Some restaurants struggled to attract enough traffic, while others saw profitability erode as their markets changed. Cook listed approximately $42.1 million in funded debt obligations when the company filed.<\/p>\n RED LOBSTER’S 37-YEAR-OLD CEO BETTING ON NOSTALGIA, AI TO FUEL CHAIN’S COMEBACK AFTER BANKRUPTCY<\/a><\/p>\n Oprah Winfrey invested in True Food Kitchen in 2018 and remains a minority investor but is not involved in daily operations. (Elyse Jankowski\/Variety \/ Fox News)<\/p>\n Winfrey made a significant equity investment in True Food Kitchen in 2018.<\/p>\n Then-CEO Christine Barone declined to disclose the investment amount but described it as “a very significant amount for our future.” She also said Winfrey would join the company\u2019s board as the chain planned to double its size over the next three years.<\/p>\n OPRAH WINFREY ADMITS SHE BEGGED TALK SHOW AUDIENCE TO BURY FOOTAGE OF WHITNEY HOUSTON ONSTAGE FALL<\/a><\/p>\n True Food Kitchen confirmed to FOX Business that Winfrey remains a minority investor but does not have a representative on the company\u2019s board and is not involved in day-to-day management.<\/p>\n True Food Kitchen CEO Jeff Chandler, who took the helm in July, called the bankruptcy process “the best path forward” to simplify the business.<\/p>\n “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,” Chandler said in Monday\u2019s announcement. “We are confident this step will help us build a stronger True Food Kitchen for the future.”<\/p>\n Before filing, the company cut corporate staff, renegotiated vendor contracts and sought changes to its restaurant leases, according to Cook\u2019s declaration.<\/p>\n The company did not disclose how many employees were affected by the restaurant closures<\/a> in its announcement. Chandler acknowledged the impact on workers.<\/p>\n![\"Diners](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/10\/1791283847_758_true-food-2.png\")
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