Planta, a US-based plant-based restaurant chain, has announced its filing for Chapter 11 bankruptcy protection.

The move comes as part of an effort to reduce costs amidst a decline in consumer dining out habits.

Planta's parent company, CHG US Holdings, and 17 affiliates sought protection in the US bankruptcy court in Wilmington, Delaware.

Miami Beach's CHG US Holdings, which operates 18 Planta eateries across major cities like New York, Chicago, and Los Angeles, reported assets of $50,000 to $100,000 against liabilities ranging from $10m to $50m, reported The Street.

The bankruptcy petition was filed on 12 May 2025, in the District of Delaware.

In a statement, reported by Reuters the restaurant chain mentioned that it viewed its reorganisation as a "strategic opportunity to streamline our cost structure and strengthen our balance sheet."

Planta, established in 2016 by CEO Steven Salm, has locations in key markets including Atlanta, Bethesda, Chicago, Los Angeles, New York, southern Florida, Toronto and Washington D.C..

The foodservice sector has seen several high-profile bankruptcies over the past year, with chains such as Red Lobster, TGI Fridays, and Buca di Beppo struggling due to reduced discretionary spending by consumers.

Consolidated Burger Holdings, a Burger King franchisee with 57 outlets in Florida and Georgia, also filed for Chapter 11 bankruptcy protection in April 2025.

The Destin-based company reported its assets and liabilities to be between $50m and $100m, with operations spread across three geographical clusters.

Hooters of America (HOA) has also entered bankruptcy proceedings in Texas with an aim to address its $376m debt.

HOA plans to sell all its corporate-owned restaurants to a consortium that includes two of its existing franchisees, which collectively manage over 30% of Hooters' domestic franchised locations, including 14 of the highest-grossing outlets.