CAMBRIDGE, Mass. — Clover Food Lab, a fast-casual chain of restaurants specializing in locally sourced, vegetable-based foods, has filed for Chapter 11 bankruptcy protection Friday.
The Cambridge-based startup, which has several restaurants all around the Boston Metro area, said it can no longer afford to pay a lease on a new commissary it just opened because the company failed to raise enough money from investors, according to documents filed with US Bankruptcy Court in Delaware on Nov. 3.
“COVID changed everything for restaurants. The way people eat, drink, work, and get together has shifted substantially,” the company said in a written statement about the bankruptcy, adding “while we’ve seen a steady recovery in sales, they are still below pre-pandemic levels.”
Chapter 11 Subchapter 5 is part of U.S. bankruptcy law that allows debtors to reorganize their liabilities with the goal of continuing to operate.
Clover started as a food truck in 2008 on the MIT campus and over the years expanded to restaurants. The popular vegetable-focused eatery is known for sourcing much of its ingredients locally.
The chain recently closed its location at 565 Boylston Street.
Clover currently operates 12 restaurants, two kiosks within Whole Foods markets, a catering business, and meal box production and delivery service. It employs more than 220 full-time and part-time workers.
Editor’s note: In a previous version of this story, Boston 25 reported that Clover “will soon shutter its restaurant at 27 School Street,” but that remains to be determined, according to the chain.
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