Planta Files for Chapter 11 Bankruptcy Amid Financial Struggles
In a significant turn of events, popular upscale vegan restaurant chain Planta has filed for Chapter 11 bankruptcy protection, citing financial difficulties that have plagued the brand. Founded in 2016 by CEO Steven Salm and Chef David Lee in Toronto, Planta rapidly expanded, becoming a go-to dining destination for celebrities, including Bella Hadid and Hailey Bieber. With 18 locations across Florida, New York, Los Angeles, and Canada, the restaurant rose to fame after music icon Pharrell Williams shared his dining experience at its Miami Beach outlet in 2018.
Despite experiencing impressive revenue growth, finishing 2024 with $46 million, the company could not withstand the adverse effects of the pandemic, a consumer slowdown, and rising costs. Planta’s inability to keep up with lease payments ultimately led to its bankruptcy filing, with liabilities estimated between $10 million and $50 million and assets valued at less than $100,000.
Initially thriving due to a surge in interest in plant-based diets, Planta’s fortunes deteriorated as dining traffic declined and operational costs surged, accentuated by increased reliance on third-party delivery services. CEO Steven Salm attributed these factors to ‘irrecoverable damage’ for the business, which has not yet announced plans to close any of its locations.
Despite its bankruptcy status, Planta secured funding through a convertible note from Anchorage Capital Group, allowing the debt to be converted to equity if not repaid. The chain’s struggles align with a broader trend, as other restaurant brands like Hooters and Bar Louie also face significant financial hurdles this year. As the restaurant industry grapples with changing consumer preferences and economic pressures, Planta’s future remains uncertain.
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