Salad and Go files for Chapter 11 bankruptcy after cyclospora fears worsened its challenges

• The company has assets and liabilities both valued between $500 million and $1 billion, having previously expanded rapidly under private equity firm Volt Investment to more than double its store count
• The cyclospora outbreak devastated industry-wide lettuce sales, with even chains like Taco Bell experiencing traffic plunges after CDC linked iceberg lettuce to the outbreak
• Salad and Go had already closed dozens of Texas and Oklahoma stores earlier in 2025 under new CEO Mike Tattersfield, reducing its footprint from a much larger national presence to just Arizona and Nevada locations

Summary: Salad and Go Files Chapter 11 Bankruptcy Amid Cyclospora Outbreak

Key Development:

Salad and Go filed for Chapter 11 bankruptcy protection and announced immediate closure of all remaining locations on Wednesday, marking a complete shutdown of operations.

Primary Causes:

The fast-casual salad chain cited multiple factors leading to bankruptcy:

• Strategic growth challenges
• Weakening consumer demand
• Rising operational costs
• Industry-wide impact from cyclospora outbreak beginning in July

While Salad and Go was not directly implicated in the outbreak, the water-borne parasite sickened at least 10,000 people and resulted in deaths (exact number unspecified), according to Michigan Health Department. The crisis severely damaged consumer confidence in fresh lettuce across the restaurant industry.

Company Background:

• Founded in 2013 as a Sweetgreen competitor
• Used commissary kitchens for food preparation
• Private equity firm Volt Investment acquired majority stake, buying out founders Tony and Roushan Christofellis in 2020
• Under former Wingstop CEO Charlie Morrison, the chain aggressively expanded, more than doubling store count
• Morrison departed in late 2024 following board disagreements

Recent Restructuring:

Former Fiesta Restaurant Group CEO Mike Tattersfield assumed leadership in 2025, closing dozens of Texas and Oklahoma locations. The company's footprint shrank to approximately 70 locations in Arizona and Nevada before the final shutdown.

Financial Position:

Bankruptcy filings reveal assets and liabilities both valued between $500 million and $1 billion.

Industry Impact:

The cyclospora outbreak affected multiple chains including Taco Bell (linked to contaminated iceberg lettuce) and Sweetgreen, causing traffic declines and prompting supply pullbacks industry-wide.