By CHLOE, the vegan restaurant chain owned by BC Hospitality Group, filed for bankruptcy with plans to sell itself by mid-February of 2021. The business cites the pandemic and the resulting loss of customers as the reason, stating that a “complete reorganization of the company is necessary for by CHLOE to emerge and thrive long-term”.
In 2018, the company, which was founded in 2015, raised $31 million in funding to realize its ambitious expansion goals. By 2023, the company had planned to open a total of 50 new locations across the US, Europe and the Middle East. At present, by CHLOE locations can be found in several American cities, as well as Toronto and London.
In terms of the foodservice sector, there has been an increasing trend towards home delivery this year, with food delivery platform Deliveroo reporting a 115% increase in vegan orders. In the case of by CHLOE, however, neither the contactless pick-up service nor home delivery has been able to limit the financial losses.
By CHLOE recorded revenue losses of 67% since February, which forced the vegan restaurant chain to lay off or furlough more than half of its staff. To keep the business going during the bankruptcy, the company has now received a $3.25 million debtor-in-possession loan from a group of investors that will cover its costs until the sale, as reported by Bloomberg.
Following the bankruptcy announcement, CEO Jimmy Haber stepped down as head of the restaurant company. By CHLOE is currently searching for a new leader, but in the meantime, Chief of Staff Catey Mark Meyers will lead the company, as reported by QSR.
As quoted by QSR, Mark Meyers commented: “The COVID-19 pandemic hit all sectors of the restaurant industry especially hard, including the fast-casual category. In the face of remarkably challenging conditions to operate in, we believe that a complete reorganization of the company is necessary for by CHLOE to emerge and thrive long-term.”
