Plant-based restaurant chain Planta, along with its parent company CHG US Holdings and 17 affiliates, filed for Chapter 11 bankruptcy protection on May 12, 2025, in the US Bankruptcy Court for the District of Delaware. The company cited the need to restructure its operations and reduce costs, amid declining consumer spending on dining out in the US.
Steps to improve financial stability
According to The Street, the bankruptcy filing by CHG US Holdings reported assets of between $50,000 and $100,000, with liabilities ranging from $10 million to $50 million. Planta described the filing as a strategic move to streamline operations and improve its financial standing, according to a statement published by Reuters.
Planta operates 18 locations across major cities such as New York, Chicago, Los Angeles, and Toronto, serving plant-based dishes under various concepts, including Planta, Planta Queen (specializing in Asian cuisine), and the more recently launched Planta Cocina (featuring Pan-Latin options). The chain, headquartered in Miami Beach, Florida, expanded its footprint in 2023 with the opening of seven new restaurants.
Economic pressures on full-service restaurants
This filing reflects broader challenges in the restaurant industry. Fitch Ratings recently downgraded its outlook for US restaurants, citing weakening consumer confidence and higher inflation costs. Expenditures on dining out are expected to fall, with fewer customers visiting restaurants. Inflation on food and labor costs has made it harder for restaurants to stay profitable, especially for full-service establishments like Planta.
Despite its growth, Planta is facing the same economic pressures that many restaurants are grappling with, particularly in a time of higher costs and reduced consumer spending.
