Toronto’s popular plant-based chain seems to be facing some trouble. On Monday, Planta filed for Chapter 11 bankruptcy in the U.S., as the vegan brand known for turning kale and cauliflower into viral dishes looks to cut costs.
In court documents submitted in Wilmington, Delaware, Planta’s parent company, CHG US Holdings, along with 17 affiliated entities, cited a need to “streamline it’s cost structure” as Americans tighten their belts and dine out less. The filing is part of what the company is calling a “strategic opportunity” to restructure operations and balance the books.
Planta says the bankruptcy filing is a chance to reorganize and cut costs — not a sign the company is shutting down.
Planta was founded in 2016 by Steven Salm and executive chef David Lee in Toronto. What started as a trendy vegan spot quickly grew into a full-blown brand, known for stylish dining and veggie sushi. Now based in Miami Beach, Planta has expanded across the U.S., with locations in cities like New York, L.A., Chicago, and D.C.
With prices going up, people are spending less on eating out. Big U.S. chains like Red Lobster and TGI Fridays have filed for bankruptcy and now it seems that Planta is feeling the pressure too.
For now, Planta’s two Toronto locations — Yorkville and Queen West — remain untouched and fully operational. Salm and Lee have not indicated any plans to shutter their Canadian restaurants, and there’s no sign of Chapter 11 filings north of the border.
Over the years, Planta has become more than just a trendy vegan spot. It’s a brand that helped shape plant-based dining across North America.
We’ll update this story as more information becomes available.
