Clover Food Lab, a Boston-based vegetarian fast-food chain, filed for Chapter 11 bankruptcy on November 3, 2023. High rent, low sales, and lack of funding are culprits for the Delaware federal bankruptcy court filing. According to the filing, Clover is seeking relief under Chapter 11 in hopes the filing will help stabilize and restructure its business. Also in the filing, the company expressed it will terminate the leases on its locations that are underperforming and have above-market rent. In 2008, Clover started a food truck and expanded to restaurants. The eatery has a reputation for sourcing much of its ingredients locally. Clover operated 12 restaurants, two kiosks within Whole Foods markets, a catering business, and a meal box production and delivery service. Recently named CEO Wrin Piper stated that restaurant traffic has remained lower than pre-pandemic levels, and all rental abatements and government assistance have ceased. Moreover, the company had planned this year to expand around New England and into New York, expecting to raise capital. However, with the failure of Silicon Valley Bank, the occurring fallout, and unsuccessful funding efforts by Clover, plans fell through. According to the filing, the company has had issues with leases for three of its restaurants, which have increased rents and lower sales, and has endeavored to work out solutions with its landlords. The Back Bay location closed in August after it was losing $350,000 a year due to a legal challenge from its landlord there.
Source: Boston eatery chain Clover Food Lab files for bankruptcy
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