Planta Files for Bankruptcy

By VEGPRENEUR team

Toronto-born plant-based restaurant chain Planta has filed for Chapter 11 bankruptcy protection in the District of Delaware, joining a growing list of high-profile vegan and vegetarian concepts facing financial headwinds.

Founded in 2016 by CEO Steven Salm and Executive Chef David Lee, Planta set out to make plant-based cuisine more accessible and appealing to the mainstream. Over the years, the brand expanded rapidly across North America, growing to 18 locations across major cities including Toronto, New York City, Los Angeles, Chicago, Atlanta, Miami, and Washington, D.C.

The bankruptcy filing includes Planta and 17 affiliated entities under CHG US Holdings, based in Miami Beach, Florida. According to court documents, the group reported between $50,000 and $100,000 in assets, against liabilities ranging from $10 million to $50 million. Key creditors include landlords, food vendors, and legal service providers. Notably, the Atlanta Buckhead location is facing a rent claim exceeding $600,000, and one law firm is owed over $300,000.

Planta has built a brand known for sustainable operations and a creative plant-based menu that highlights seasonal, locally sourced ingredients. Their waste-conscious approach included eliminating single-use items like printed checks and water bottles, and the menu featured globally inspired dishes such as Pad Thai Slaw, Japanese Steak, and Chinese Chick’n Salad.

Despite its mission-driven positioning and early success, the filing is another indication of the mounting challenges facing plant-based foodservice operators. The sector has seen a wave of closures recently, including Neat Burger—which shut down all but two of its locations—and Hart House, the vegan fast-food concept founded by Kevin Hart, which shuttered all four of its restaurants in late 2024.

As the plant-based industry continues to evolve, the closure of once-promising chains like Planta highlights the need for more sustainable business models and deeper alignment between consumer demand and operational scalability.