The future of a popular, fast-casual vegan restaurant located in Yorkdale Shopping Centre is uncertain following the announcement that its parent company, BC Hospitality Group, has filed for Chapter 11 bankruptcy and plans to be sold.
The owners of by CHLOE., which opened its first Toronto location roughly one year ago, reported a 67 per cent loss in revenue since February and were forced to lay off or furlough more than half of the company's staff, as reported by Bloomberg.
According to court filings, investors will be providing by CHLOE. with a $3.25 million debtor-in-possession loan to help it keep operating in bankruptcy until the chain can sell itself, which it aims to do by mid-February.
Some of the chain's restaurants have been operating with reduced capacity throughout the pandemic, while locations including the one in Toronto and the original in New York's West Village currently remain shuttered.
Thank you for the love and support you've shown us during these trying times. We are excited to continue to serve our guests and support our team members and look forward to making 2021 more delicious, one plant-based meal at a time. 🌱❤️ pic.twitter.com/UgSNvxOXER
— by CHLOE. (@eatbychloe) December 16, 2020
Court papers also indicate that the company had planned to open two new locations in addition to the 14 in the U.S., four in the U.K. and one in Canada before the pandemic hit.
by CHLOE. was co-founded by well-known chef Chloe Coscarelli and Samantha Wasser back in 2015, but Coscarelli was ousted from the company roughly two years later — resulting in a lengthy and dramatic legal battle.
Following news of the bankruptcy filing, Coscarelli announced that a judge had officially restored 50 per cent ownership of the company to her following the years-long legal drama between the chef and BC Hospitality Group.
"Five years ago, we opened the doors to the very first BY CHLOE on Bleecker Street. It was more than a restaurant to me; it was a dream—one I poured my entire heart and soul into pursuing," wrote Coscarelli on Instagram following the decision.
"Little did I know that dream would soon become a nightmare. Less than a year after we opened, I was viciously pushed out of the company I founded by my business partner and have been involved in a brutal legal battle ever since."
But while Coscarelli may once again be part-owner of the company she founded, she said its future is as uncertain as ever.
"The truth is that the future of BY CHLOE is still very much in flux," wrote Coscarelli.
"In response to the recent award that reinstated my 50% ownership in the company, I learned this week that BY CHLOE filed for Chapter 11 bankruptcy. Needless to say, I am on the lookout for new partners," she continued.
"A million thank yous to all who believed in me during those dark moments when it felt like all hope was lost. Hope, of course, is never lost, and after darkness always comes light. Keep fighting for what you know in your heart is right, and I promise I will do the same."
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