A Delaware court approved the Chapter 7 declaration once the debtor stated no other options were available

Planta, a plant-based restaurant chain founded in Toronto in 2016, will be liquidated following a court approval to convert its Chapter 11 bankruptcy case to Chapter 7.

A Delaware judge ruled on the decision following the debtor’s statement that there were no other options, according to Law360.

Court documents filed in the United States Bankruptcy court for the District of Delaware earlier this week suggest the company’s attempts at reorganization following its May 2025 Chapter 11 filing, in which eight restaurants were expected to continue operations, were ineffective and that funding had run dry.

Planta emerged from bankruptcy in September through a strategic asset sale to New CHG US Holdings, a newly formed entity affiliated with Anchorage Capital Group, one of its former creditors. The group acquired the chain for about $7.8 million, mostly in converted debt.

The liquidation includes 17 restaurants In New York City, Miami, Chicago, Denver, Atlanta, Los Angeles, and Washington, D.C. Planta’s website continues to list seven locations, including Chicago, Los Angeles, New York, Toronto, Washington, D.C., Bethesda, Md., and Yorkville (Toronto).

Planta is led by founder and chief executive officer Steven Salm and co-founder and executive chef David Lee with a mission of expanding the accessibility and acceptability of plant-based dining.

In its Chapter 11 petition from May, Planta listed $50,000 to $100,000 in assets and $10 million to $50 million in liabilities. It cited the pandemic and increased costs for its struggles.

Plant-based and vegan-centric concepts have experienced significant challenges in the past couple of years. Neat Burger recently closed all but two of its locations, following a broader trend of such concepts’ closures, for instance. Kevin Hart’s vegan quick-service chain Hart House also closed all four of its locations in late 2024 after a two-year run. New York City’s landmark restaurant Eleven Madison Park began serving meat again last year after going meatless in 2021.

According to the Vegetarian Resource Group, 3% of Americans identify as vegans, while 5% identify as vegetarian.

Contact Alicia Kelso at Alicia.Kelso@informa.com

Source https://www.nrn.com/casual-dining/planta-s-ch-11-bankruptcy-converted-to-liquidation