Salad and Go files for Chapter 11 as cyclospora fears deepen operating strain

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Salad and Go files for Chapter 11

Highlights

Salad and Go filed for Chapter 11 bankruptcy on Tuesday, citing strategic missteps, declining demand, rising costs, and cyclospora outbreak fears.
The chain will close all remaining locations, which had already dwindled to about 70 stores in Arizona and Nevada, with listed assets and liabilities between $500 million and $1 billion.
Industry-wide, the ongoing cyclospora outbreak has sickened at least 10,000 people and driven down sales at affected and unaffected chains, including Taco Bell and Chipotle Mexican Grill.

Bankruptcy filing and closure plan

As reported by CNBC, Salad and Go says it sought Chapter 11 bankruptcy protection because earlier strategic growth problems, softer consumer demand and higher costs combined to weaken the business. The company also says fears around eating lettuce during the ongoing cyclospora outbreak worsened those pressures, even though it says it was not implicated in the July outbreak.

The chain says all existing locations will close. Its footprint had already been reduced to about 70 stores in Arizona and Nevada after dozens of closures in Texas and Oklahoma under CEO Mike Tattersfield, who took over in 2025.

Tattersfield calls the move a painful day for employees and customers. According to the bankruptcy filing made on Tuesday, Salad and Go lists assets between $500 million and $1 billion, with liabilities in the same range.

Outbreak impact and expansion legacy

The cyclospora outbreak is affecting more than one restaurant operator. The Centers for Disease Control and Prevention says the water-borne parasite has sickened at least 10,000 people, and the Michigan Health Department said on Monday that two people have died.

Yum Brands' Taco Bell saw traffic fall after the Food and Drug Administration linked iceberg lettuce at some restaurants to the outbreak, although executives say sales are already recovering after the affected supply was removed. Chains not linked to the outbreak, including Chipotle Mexican Grill, have also seen sales decline as consumers grow more wary of fresh lettuce.

Founded in 2013, Salad and Go set out to challenge Sweetgreen with a commissary-kitchen model that prepared produce and proteins before shipping ingredients to stores. Volt Investment eventually bought out founders Tony and Roushan Christofellis in 2020, and under then-CEO Charlie Morrison the company more than doubled its store count before later scaling back.

Our earlier coverage of John Lewis Partnership highlighted how weaker consumer spending and higher operating costs were darkening the retailer’s trading outlook and squeezing profitability. We noted management’s shift toward margin improvement and tighter stock control, even as the group continued reinvesting in store refurbishments and new Waitrose locations amid a highly competitive environment.

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