On May 12, 2025, CHG US Holdings LLC, the parent company to the upscale plant-based restaurant chain Planta, filed for Chapter 11 protection in the District of Delaware’s U.S. Bankruptcy Court. The filing affects 18 establishments in seven U.S. cities and Toronto, a key market for the vegan dining industry, as costs of operation increase while consumer behavior changes.
Highlights
- Planta reported just $50,000–$100,000 in assets against liabilities totaling millions.
- Some of the largest creditors are property landlords and suppliers of specialty foods.
- Planta joins a list of restaurant casualties including, Red Lobster, TGI Fridays, and Ruby Tuesday.
Struggling Amid Economic Changes
Planta’s bankruptcy highlights broader systemic issues within the upscale plant-based dining sector, where premium pricing strategies conflict with diminished consumer spending on discretionary dining. The chain has internal cost-of-operation and external market forces pressures that converge to create a perfect storm for financial distress.
Escalated Debt and Liquidity Challenges
A staggering 100:1 assets-to-liabilities ratio shows the extent of Planta’s financial decline since 2020, leaving the firm with little alternative but to take refuge in court. Court filings reveal the CHG US Holdings and 17 related firms owing a collective $10–$50 million with negligible cash cushions to their name.
Inflation-Driven Operational Pressures
The company’s niche plant-based model, up until now its market differentiator, has progressively become costly to sustain as inflation disproportionately affects its staple ingredients.
Industry specialists note that plant-based protein costs increased 22% year-over-year in 2024, about double the 9% surge in traditional proteins. To compound these hurdles, Planta’s high-end restaurant concept involves experienced kitchen staff to make sophisticated plant-based dishes, while chef salaries have risen 18% since 2022. High-end property fees, especially in areas such as New York and Miami, account for up to 34% of monthly operating costs.
Details of the Bankruptcy Filing
The Delaware court filing (Case No. 25-10851) presents a multi-phase restructuring plan to prevent liquidation and resolve creditor claims. The filing captures the gravity of Planta’s financial condition and provides an overview of potential recovery through court-supervised reorganization.
Court Proceedings and Asset Disclosure
Attorney Joseph C. Barsalona II of Pashman Stein Walder Hayden, P.C. is advocating for CHG US Holdings. He is guiding the firm through an expedited court hearing. It is designed to protect precious vendor relationships.
The debtors have liquid resources of $50,000 to $100,000. The majority of the amounts derive from restaurant cash reserves. Concurrently, there is secured debt of $8.2 million.
Principal Creditors and Payment Priorities
The filing in bankruptcy means the majority of liabilities are paid out to unsecured creditors. There will be tremendous losses for most creditors.
The biggest filings are $613,000 for rent from Los Angeles landlord 8461 Melrose Avenue LLC, $176,000 with specialty produce dealer Baldor Specialty Foods, and $154,000 in rent arrears to NYC landlord 13 West 27th Street Owner LLC.
The strategy for restructuring places the highest priority on paying “critical vendors” first. The objective behind this measure is to cushion supply chains from bankruptcy. Under the strategy, 45% of unsecured claims will be paid in part.
Future Plans and Leadership
CHG US Holdings aims to emerge as a leaner operation through planned site closures and negotiated vendor arrangements. The firm has put in place targeted plans to address its financial challenges without compromising its core business model and culinary identity.
Roadmap to Solvency
The company is still led by founder and CEO Steven Salm and supported by majority stakeholder Anchorage Illiquid Opportunities Master VI (B), L.P., which holds a 49.1% equity stake.
The turnaround plan involves several initiatives focused on different areas. There are plans for lease renegotiation in 12 stores. Of these, 4 to 6 would be redesigned into smaller formats known as “Planta Express.” Menu items would be cut by 40% to reduce ingredient and labor expenses. Additionally, the company will receive $2.5 million in debtor-in-possession financing to support business operations during restructuring.
A company statement emphasizes the aim of preserving its “core culinary identity.” The proposal also aims at a cost saving of $3.8 million annually. These are expected to be delivered through supply chain optimizations.
While Planta navigates through Chapter 11 bankruptcy, its experience puts into perspective deeper issues within the field of upscale plant-based eating.
