By Chloe's UK restaurants unaffected by US bankruptcy filing
Vegan restaurant group By Chloe's London restaurants will continue to trade as normal despite the brand's US arm filing for bankruptcy.
The chain has opened four London restaurants in Covent Garden, Oxford Circus, One Tower Bridge and the O2 arena since 2017.
As first reported by Bloomberg, By Chloe's parent company BC Hospitality Group Inc filed for Chapter 11 bankruptcy this week and is exploring a sale.
The group said revenue across its 14 US restaurants fell 67% since the start of the pandemic and three sites are still unable to reopen.
It has obtained working capital financing from a consortium of its existing investors that will allow the business to continue operating while it undergoes ‘financial restructuring'.
A spokesperson confirmed By Chloe's UK restaurants are run under license by a separate company and will continue to trade ‘as normal', offering takeaway and delivery while London remains under Tier 3 rules.
Jimmy Haber has stepped down as By Chloe's chief executive officer and the board of directors has begun searching for a replacement to lead its ‘next phase of growth'. Chief of staff Catey Mark Meyers is leading the company in the interim.
"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 reorganisation of the company is necessary for By Chloe to emerge and thrive long-term," said Meyers.
"The financial restructuring is a positive step forward towards our planned growth goals pre-pandemic, which include expansion in the Los Angeles market and internationally in 2021 and enriched investment in a culinary innovation pipeline."
The investor group supporting By Chloe through the restructure is led by QOOT International and includes Kitchen Fund, Lion Capital, and Bain Capital Double Impact.
Vegan chef Chloe Coscarelli founded By Chloe in 2015 but was removed from the company in 2017. She has since launched a lawsuit against the business, which is still ongoing.
