This Beloved Bankrupt Burger Chain Is Making a Comeback Under a New Name
The beloved vegan burger chain By Chloe is back after a bankruptcy filing, but you won't find it under the same name anymore. The fast-food company just rolled out a full rebrand at all of its locations, and will now be known as Beatnic.
But the name change wasn't just a voluntary exercise in rebranding—the chain was ordered to give up the moniker that made it famous as part of its bankruptcy settlement, which was completed in March. By Chloe's parent company BC Hospitality Group sold the chain to a group of investors for $333,000, who bought the company's assets out of bankruptcy.
However, a judge in a separate trademark hearing ruled that BC Hospitality doesn't have the right to sell By Chloe's name without agreement from its original founding chef Chloe Coscarelli, who the brand was named after. Since leaving the business in 2017, Coscarelli had been trying to prevent the chain from continuing to use her name.
The new owners were given six months to come up with a new name and remove the "By Chloe" signage from all "restaurants, supplies, digital media and all other assets," court documents showed. According to Forbes, this transition should be completed by September.
Beatnic, which will very much remain a vegan fast-food chain, drew inspiration for its name from the brand's original location in New York City's Greenwich Village, the old stomping grounds of the Beat Generation artists. And according to Greg Golkin, Managing Partner of Beatnic's co-lead investor Kitchen Fund, the name is also a nod to the brand's free-spirited, unique approach.
"There has been a magic to this concept since the first day on Bleecker Street. While the Guac Burger and Quinoa Taco Salad have cult-like followings, the brand's audaciousness and eccentricity are what set it apart," he said. "The new name will celebrate that progressive spirit while reaffirming a commitment to an accessible vegan experience."
According to Restaurant Business, the chain currently has six open locations in New York, one in Boston, and one in Providence, R.I. Two of its New York locations are temporarily closed. The chain has shrunk significantly from the 14 locations it operated in 2019.
For more, check out:
- 5 Major Fast-Food Chains Falling Out of Favor With Customers
- Another Popular Regional Burger Chain Just Filed For Bankruptcy
- America's Largest Fast-Food Chain Is Being Sued For Texting Customers
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