(Bloomberg) -- By Chloe, the fast-casual chain known for its vegan burgers and salads, filed for Chapter 11 bankruptcy with plans to sell itself after the Covid-19 pandemic hampered liquidity.
Since February, By Chloe has seen its revenue drop 67%, and the chain was forced to lay off or furlough more than half its staff. Three of its locations, including its original restaurant in the West Village, remain closed while others are operating at reduced capacity.
A group of investors have agreed to provide By Chloe with a $3.25 million debtor-in-possession loan to help the company keep operating in bankruptcy, according to court filings. The chain is seeking to sell itself by mid-February.
Prior to the pandemic, the chain operated 14 restaurants in the U.S. and was planning to add two more. It also licensed its names to operators who opened locations in Toronto and London, according to court papers.
New York-based By Chloe was founded in 2015 by celebrity chef Chloe Coscarelli and Samantha Wasser with a single location in the West Village. The restaurant opened as vegan eating was transitioning from a health-food niche to the culinary mainstream and drew lines out the door.
Parent company BC Hospitality Group Inc. listed assets of $10 million to $50 million and liabilities of $1 million to $10 million in its petition.
Coscarelli gained fame for her vegan recipes after winning an episode of the Food Network's “Cupcake Wars” a decade ago. She left the chain in 2017 after restaurant group ESquared Hospitality sought to have her removed and an arbitrator agreed.
The case is BC Hospitality Group Inc., 20-13103, United States Bankruptcy Court for the District of Delaware. To view the docket on Bloomberg Law, click here.
©2020 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
