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Food52 Inc., the once-red-hot Brooklyn-based cooking and home décor company, has filed for bankruptcy protection, a sharp turn for a brand that built its reputation on community, creativity and curated kitchens.

The Chapter 11 filing came this week in Delaware bankruptcy court, just days after a sweeping round of layoffs left the 16-year-old company reeling and short on cash.

Funding Cut Sparks Sudden Collapse

Court documents show Food52’s lender abruptly withdrew its financial support on Dec. 15, leaving the company with virtually no money on hand. The filing describes a business thrust overnight into crisis mode, struggling to stay afloat after the funding lifeline was severed.

Food52, which runs a recipe and lifestyle platform and sells premium home goods online, declined to comment publicly on the bankruptcy.

A Search for a Buyer Turns Urgent

Founded by New York Times food journalists Amanda Hesser and Merrill Stubbs, Food52 had already been shopping itself to potential buyers when lender Avidbank pulled its backing, according to court filings. Avidbank did not respond to requests for comment.

Out of that scramble emerged a bidder: Boston-based America’s Test Kitchen, known for its public television cooking programs. The company agreed to serve as the stalking-horse bidder, offering $6.5 million to acquire Food52, it announced Tuesday.

The proposed sale price underscores how dramatically Food52’s fortunes have shifted. In 2019, the company was valued at about $100 million, when private equity firm the Chernin Group invested $83 million for a controlling stake, the Wall Street Journal reported.

Expansion Becomes a Burden

Food52’s troubles mounted after it expanded beyond its core brand, acquiring tableware label Dansk and Portland, Oregon–based home décor company Schoolhouse. According to the bankruptcy filing, managing three distinct brands created complexity with limited overlap.

The company also weathered repeated executive turnover, shifting strategies and ongoing staff changes — all of which strained operations, the filing said.

Leadership Faces a Hard Reset

Food52 operates out of the Brooklyn Navy Yard, where it occupied the entire 13th floor for offices, test kitchens and studios. The company is currently led by CEO Erika Badan, a former Barstool Sports executive who has held the role for nearly two years.

Badan personally submitted the bankruptcy filing, writing candidly that the Chapter 11 process is imperfect but necessary. She said it represents the only route to preserve Food52 as a going concern and maximize its remaining value under the circumstances created by the lender’s actions.

What Comes Next

America’s Test Kitchen’s $6.5 million offer is not final. The stalking-horse bid is open to higher or better proposals, with an auction for Food52’s assets scheduled for February. In the meantime, the bid provides immediate cash to keep the business operating during the sale process.

Court records list Food52 with more than $1 million in assets and over $17 million in debt. A small skeleton crew of employees continues to run the company as it navigates bankruptcy — a stark contrast to the glossy image that once made Food52 a darling of digital food culture.