True Food Kitchen owes Stanford Shopping Center more than $618,000 in rent, according to SFGATE’s review of bankruptcy filings. The Palo Alto restaurant remains open after the chain filed for Chapter 11 bankruptcy protection Sunday, Oct. 4.
The Scottsdale, Ariz.-based chain announced the filings in the U.S. Bankruptcy Court for the Southern District of Texas in a company press release Monday, Oct. 5. Twelve restaurants had their final day of service Oct. 4. The remaining 34 locations across 14 states, including the Stanford Shopping Center outpost, are still serving customers. The company’s Palo Alto location page continues to list operating hours and offer reservations.
The rent figure comes from a list of unsecured claims in the bankruptcy filing, according to SFGATE. The Stanford Shopping Center claim ranked among the 30 largest unsecured claims. Simon Property Group, which owns the shopping center, and True Food Kitchen did not respond to SFGATE’s requests for comment before its Oct. 6 publication.
The chain entered bankruptcy carrying about $42.1 million in funded debt, excluding lease obligations and vendor bills, according to court documents reported by Chron.
To keep operating, the company secured a commitment for roughly $20 million in debtor-in-possession financing from HumanCo TFK IV, subject to court approval. That financing would help fund operations during the bankruptcy process.
True Food Kitchen plans to pursue a court-supervised sale to find a long-term partner, according to the press release. Any proposed transaction would require court approval.
Chief restructuring officer Nathan Cook cited slow foot traffic, changing demographics and significant management turnover as factors that hurt the business, according to legal filings reviewed by SFGATE. CEO Jeff Chandler said in the press release that the filing was the best path forward to simplify the business.
Five California locations remain open, including two in the Bay Area: Palo Alto and Walnut Creek, according to SFGATE. Three California restaurants were among the 12 that closed: the Westfield Century City mall, the Point in El Segundo, and the Westfield UTC mall in San Diego.
Founded in Phoenix in 2008 by restaurateur Sam Fox and Dr. Andrew Weil, True Food Kitchen grew from 20 restaurants in 2017 to 46 before the contraction, SFGATE reported.




