November 6, 2023

What is Chapter 11 Subchapter 5?

On Friday we had a company meeting with all our leadership to talk about a decision we’ve made about the future of Clover. We are all focused on putting Clover on solid financial footing so we can continue to make the food you love for many years to come.

COVID changed everything for restaurants like us. The way we eat, drink, work, and get together has shifted substantially and, while Clover has seen a steady recovery in sales (and the creation of a whole new part of Clover with our meal box program) our sales are still below pre-pandemic levels.

So, we’ve decided to use Chapter 11 Subchapter 5 bankruptcy (https://www.uscourts.gov/services-forms/bankruptcy/bankruptcy-basics/chapter-11-bankruptcy-basics) to reorganize the company. 

Chapter 11 Subchapter 5 is specifically designed to help small businesses like ours to keep operating and emerge from bankruptcy fiscally healthier in a shorter period of time.

So what does Chapter 11 Subchapter 5 mean for us and for you? 

For a few of us, it means more meetings, hearings, and legal documents. But for most of you, here’s the important thing: our fresh pita and crunchy falafel and bright cabbage slaw will be the same as ever. 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.

And our mission remains: to make veggies so good you’ll dream about them. 

If you have questions or want to chat, please reach out. Write to info@cloverfoodlab.com – that’s probably the quickest way to get a response. 

We want to be as transparent about this process as we’ve been about all of Clover’s twists and turns over the years. Keeping you all in the loop is just as important to us as frying those perfect Brussels (PS: that sandwich is back starting Weds.)

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