Clover Food Lab exits bankruptcy with plans to expand around New England

Veggie-focused eatery Clover Food Lab is exiting Chapter 11 bankruptcy, the company announced Wednesday.

The popular Cambridge-based vegetarian fast food chain filed for bankruptcy in November, citing low sales following the pandemic, high rent and lack of funding. Chapter 11 bankruptcy helps companies stay in business while they reorganize and work through debt. Clover said then it was looking to stabilize and restructure its business.

Clover shut down two restaurants in Boston's Copley Square and Somerville's Assembly Row during the reorganization. The company also ended its lease on a 40,000 square foot facility in Hyde Park that it had planned to use for food production for its meal box delivery business. Clover will continue to operate 13 restaurants as well as a large warehouse in Dedham.

Clover CEO Julia Wrin Piper said the Chapter 11 process allowed the food chain to "right size" its real estate portfolio and renegotiate leases with its landlords.

"When the pandemic happened, obviously everyone's habits changed," Wrin Piper said Wednesday. "And the restaurants' sales weren't reflecting what the sales needed to be in order to sustain some of the leases that had been signed onto before the pandemic. "

Clover also trimmed its staff with layoffs early in the bankruptcy process. The company had 260 employees when it filed for bankruptcy and currently has 240 employees, according to Wrin Piper.

The company, which is known for using locally grown ingredients, said it will continue to work with farmers across New England and roll out new offerings to customers.

"All during the bankruptcy process and coming out of bankruptcy process, we're continuing to play with the menu items and categories," said Chris Anderson, Clover's senior vice president of food.

Customers will also notice a different look and feel inside Clover's restaurants as the company engages in a "brand refresh," according to chief marketing officer Kiernan Schmitt. The company will put up more pictures of the food, and highlight employees and the farmers it works with, Schmitt said.

"We want to draw people in who have never tried Clover, who don't know what Clover's food looks like or tastes like — to be enticed to come in," Schmitt said.

The company will also tweak the name of its restaurants to just "Clover," while the test kitchen in Cambridge will keep the "Clover Food Lab" name, Schmitt said.

The local chain has a five-year plan to open up 47 new restaurants across New England, focusing on smaller locations at universities and in urban areas. Wrin Piper said expansion will be a step-by-step process.

"We're looking forward to Clover growing in the next few years, now that we have a really solid financial foundation," Wrin Piper said.

The company's 13 open restaurants are on track to be profitable by June, according to Wrin Piper.