23/06/2024

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Fast food chain that had restaurants in Whole Foods files for bankruptcy after closing down 20% of locations

Fast food chain that had restaurants in Whole Foods files for bankruptcy after closing down 20% of locations

A FAST food chain that had 15 restaurants at its peak has filed for Chapter 11 bankruptcy.

The company recently closed down 20% of stores including two located inside Whole Foods.

Vegetarian fast food chain Clover Food Lab has filed for Chapter 11 bankruptcy

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Vegetarian fast food chain Clover Food Lab has filed for Chapter 11 bankruptcyCredit: Getty
It previously had two restaurants situated inside Whole Foods stores

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It previously had two restaurants situated inside Whole Foods storesCredit: Getty

Clover Food Lab, a vegetarian fast food chain based out of Boston, Massachusetts, has filed for Chapter 11 bankruptcy.

Operating in New England, the chain offers a healthier alternative to fast food with items such as chickpea fritter sandwiches, rice and bean bowls, and hand-cut fries.

It began in 2008 and expanded to 15 locations at its peak.

Clover had big ambitions in the fast food industry, claiming on its website “Someday maybe there’ll be more Clover restaurants than McDonald’s.”

But the restaurant has struggled with store closures in recent times.

It shuttered three restaurants this year, including two locations situated inside Whole Foods supermarkets.

Overall, those losses represented 20% of the chain’s store footprint.

Clover has reassured customers that its remaining restaurants won’t be closing yet.

A statement on the company’s website reads: “Clover team members will still welcome you each day, laugh with you in line, dream up meal boxes, and develop new recipes. Clover has to Clover.”

The U.S. Sun has invited Clover to comment.

FAST FOOD BANKRUPTCIES

But it is not the only fast food chain that has struggled with bankruptcy this year.

So have numerous franchisees of Burger King.

Unlike Clover, Burger King restaurants are owned by franchisees, many of whom operate dozens of restaurants in a particular area.

In March, Meridian Restaurants Unlimited filed for bankruptcy, closing 21 stores that could not be sold to other franchisees.

A similar situation happened in January with Toms King Holdings, which was forced to sell 82 of its 90 Burger King restaurants. 

A bankrupt Denny’s franchisee has been forced to close 10 restaurants.

And McDonald’s has recently closed a downtown location for a very different kind of reason.