This Adored Burger Chain Just Declared Bankruptcy
Vegan fast-food chain By Chloe has declared Chapter 11 bankruptcy following a tumultuous year. In its bankruptcy filing, which also cited the effects of the ongoing COVID-19 pandemic, the New York-based company revealed that monthly revenue had decreased by 67% since February.
By Chloe catapulted to fame in 2015 as one of the first brands to offer vegan takes on fast food. It was operating 14 restaurants in March, nine of which were located in the Empire State. Since then, the company has temporarily shut down three New York City locations and furloughed or laid off more than half of its staff, according to Restaurant Business.
The remaining locations, which also include stores in Boston, Los Angeles, and Providence, will remain open through the bankruptcy proceedings, according to Eater. The chain hopes to put itself up for sale by the middle of February. (Related: The Saddest Restaurant Closures In Your State.)
By Chloe is no stranger to legal drama. The company has been involved in an ongoing legal dispute with Chloe Coscarelli, since its namesake chef was ousted from the business in 2017. The chain appeared to be on a growth trajectory, securing a $31-million investment in 2018 for a planned expansion intended to add 20 new locations within two years prior to the pandemic.
A juggernaut of vegan fast-food, the chain was best-known for its minimally processed plant-based takes, which included vegan versions of mac 'n cheese, fried chicken, and cookies. It had also championed one of the first fast-casual vegan burgers.
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