True Food Kitchen can continue honoring gift cards under a final order entered on October 27 in its Chapter 11 case. The U.S. Bankruptcy Court for the Southern District of Texas also required monthly reports to lenders and creditors’ committee professionals on outstanding gift-card balances. [S1]

A smaller restaurant network and monthly balance reporting

The restaurant chain says customers can still use gift cards at its open locations. Its first-day declaration describes the network around the October 4 filing: 46 restaurants before the filing closures and 34 still operating when the case began. Customers near one of the 12 closed restaurants have fewer locations at which to use a balance. [S2] [S3] [S5]

The data behind the story

True Food Kitchen’s U.S. restaurant footprint at filing

The chain reported 46 U.S. locations before closing 12 restaurants in connection with the Chapter 11 filing. It reported 34 operating locations at the filing.

operating restaurants
Source
Nathan Cook first-day declaration, Docket No. 22, paragraph 22

Counts describe the U.S. restaurant network around the October 4, 2026 filing. They do not measure how many cards were redeemed, the value redeemed or the later number of operating locations.

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True Food Kitchen’s U.S. restaurant footprint at filing (operating restaurants)
CategoryU.S. locations
Before the filing closures46 operating restaurants
At filing, after the closures34 operating restaurants

True Food Kitchen’s motion estimated that roughly $3.86 million in gift-card value was outstanding when it filed. It identified CashStar as the card administrator. The final order requires a monthly schedule of outstanding amounts and prompt notice to the bankruptcy lender and the committee’s professionals if redemptions rise materially from pre-bankruptcy patterns. [S1] [S4]

The order lets the companies continue the customer programs and honor related obligations from before the filing in the ordinary course of business. The companies decide whether to exercise that authority, subject to the court’s financing and cash-collateral orders and approved budgets. The restaurant’s current FAQ is the company’s statement about present acceptance at open locations. [S1] [S3]