NEW YORK CITY — by CHLOE., a plant-based fast-casual chain with 14 units — including one in Toronto — filed for voluntary financial restructuring and Chapter 11 bankruptcy on Monday and CEO Jimmy Haber has stepped down.
The company’s Board of Directors has commenced a search for a new CEO to lead the brand in its next phase of growth and has named Chief of Staff Catey Mark Meyers to lead the company in the interim.
by CHLOE. blamed the bankruptcy filing on the impacts of the pandemic, which has forced the closure of three of the chain’s 14 locations since March and cut monthly revenue by about 67 per cent, according to the bankruptcy filing. Other restaurants were operating at reduced capacity, forcing them to furlough or lay off more than half of all employees.
“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 a complete reorganization of the company is necessary for by CHLOE. to emerge and thrive long-term,” says Mark Meyers. “While we are working to retool the brand’s operations, the by CHLOE. experience remains intact and our immediate priority is to continue to serve our loyal guests and preserve the jobs of our valuable restaurant team. 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 existing investor group supporting by CHLOE. through the financial re-structuring is led by QOOT International, along with Kitchen Fund, Lion Capital and Bain Capital Double Impact.
Young Conaway Stargatt & Taylor, LLP is serving as by CHLOE.’s legal counsel and Ankura Capital Advisors as financial advisor.