What Food52’s Chapter 11 Filing Reveals About Smart Restructuring

Over the holidays, Food52, the once high-flying digital food, lifestyle, and commerce brand, took a step many founders dread but few regret once through the process. The company filed for Chapter 11 bankruptcy protection after its lender pulled funding, leaving the company with no money left in the bank.

The filing was designed to preserve value for stakeholders, facilitate a structured sale of assets, and provide the company with breathing room to chart its future. That process has already produced a compelling outcome: a stalking horse acquisition agreement with culinary media powerhouse America’s Test Kitchen.

Bankruptcy as a Tool, Not a Dirty Word

For many, the word “bankruptcy” still carries stigma. Chapter 11, however, is first and foremost a strategic business tool, particularly in industries where brand equity and community matter as much as product and revenue.

Rather than an uncontrolled wind-down or liquidation, Chapter 11 allows a company to stabilize operations, secure debtor-in-possession financing, and orchestrate a value-preserving sale. That is exactly what is happening with Food52.

The company has secured DIP financing from America’s Test Kitchen, providing the liquidity needed to continue operations while the bankruptcy process moves forward toward a value-preserving sale.

A Thoughtful Sale Process With a Legacy Buyer

America’s Test Kitchen, widely known for its trusted cooking shows and culinary publishing brands, has stepped in as the proposed stalking horse bidder for Food52’s assets.

Serving as the stalking horse allows ATK to establish a baseline purchase price while encouraging competitive bids from other qualified buyers. The result is a process designed to maximize value while maintaining continuity for the brand.

This outcome reflects the core purpose of Chapter 11 – creating a constructive path forward, even when a business has faced significant financial challenges.

Leadership Under Pressure and the Role of Advisers

One of the most striking aspects of this case is Food52 CEO Erika Ayers Badan’s candid reflection on the bankruptcy process.

In her Substack post “So, How Was Your Break?”, Badan does not shy away from the difficulty of the experience. She details the sudden withdrawal of financing, the rapid restructuring decisions, and the emotional toll of navigating crisis leadership.

Amid that chaos, she pauses to highlight something many executives only fully appreciate in hindsight: the importance of experienced bankruptcy professionals.

She writes:
“Bankruptcy lawyers, and the finance types are great under pressure. Bankruptcy people are both good and graceful. They don’t waste energy. They are maniacs. They play the game and don’t complain.”
— Erika Ayers Badan

That is notable praise from a CEO navigating one of the most challenging moments of her career. It underscores the often overlooked value that restructuring counsel and fiduciary advisors provide: calm under pressure, strategic clarity, and relentless execution when stakes are highest. We let management continue with managing the business (where appropriate), while the bankruptcy professionals manage the case.

Why This Case Matters

The Food52 filing is more than an industry headline. It is a reminder that a well-executed Chapter 11 process can:

• Preserve brand value and customer goodwill
• Enable orderly transitions to new ownership
• Create a transparent and competitive sale process
• Allow leadership teams to maintain control and dignity during difficult change

As Badan’s reflections make clear, bankruptcy is not just about balance sheets and court filings. It is about people, including advisers who guide companies through uncertainty, teams who continue serving customers, and buyers willing to invest in a business’s next chapter.

Looking Ahead

As Food52’s Chapter 11 case moves toward an auction in early 2026, the court will continue overseeing the structured sale process. Stakeholders across the culinary and media industries will be watching closely.

Not only because of the audience and brand Food52 has built, but because this case illustrates how strategic restructuring can preserve value, support continuity, and create opportunity even in moments of profound disruption.