Popular vegan fast-food chain by CHLOE may not be around much longer. The chain’s parent company, BC Hospitality Group, has reportedly filed for Chapter 11 bankruptcy following a 67 per cent loss in revenue, according to a recent Bloomberg report. by CHLOE is just one of the many restaurants, at home and worldwide, left reeling after continuous COVID-19 related shutdowns.
According to Bloomberg, investors will inject $3.25 million into the restaurant to sustain the chain until it sells, which the company hopes to do by February 2021. With Toronto still in lockdown, by CHLOE’s local outpost is closed and will remain shuttered until further notice.
The popular vegan chain was founded in 2015 by chef Chloe Coscarelli and partner Samantha Wasser. Coscarelli launched into fame after becoming the first vegan chef to win the top prize on Food Network’s ‘Cupcake Wars.’
Shortly after by CHLOE’s initial opening, Coscarelli was ousted from the company but fought a lengthy court battle to retain her rights to the restaurant her name is tied to.
“…while your Guac Burger may have been served in packaging that bore my name throughout the years, “BY CHLOE” hasn’t been by Chloe since nearly its inception,” Coscarelli wrote in a recent Instagram post.
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Following the Chapter 11 announcement, Coscarelli let her fans know that she was recently awarded 50 per cent ownership in the company and would continue to be involved in its future.
“…after more than four years of fighting for what I knew was right, earlier this month, I finally won. A judge issued an 87-page ruling in my favor, and I regained my membership in the company I created,” she wrote.
Whether or not the restaurant will continue to exist in Toronto (or elsewhere) is uncertain. Before filing for bankruptcy, by CHLOE reportedly had plans to open another location in Canada and several across the United States. For now, though, the chain’s future remains unclear.
“The truth is that the future of BY CHLOE is still very much in flux,” wrote Coscarelli. “Needless to say, I am on the lookout for new partners .”