The group, which operates 14 restaurants in the US, has been hit hard by the Coronavirus pandemic and, as a result, has filed for Chapter 11 bankruptcy with plans to sell itself, according to Bloomberg.
It is reported that the healthy-eating chain saw revenue slump by 67% and was forced to lay off or furlough more than half its staff.
By Chloe was founded in Manhattan in 2015 by chef Chloe Coscarelli and Samantha Wasser on Bleecker Street and proved to be an instant smash, with regular queues outside the tiny 10-cover restaurant.
The brand made the move to London in 2018, its first international restaurant.
By Chloe UK is operated under license in the UK by Middle Eastern F&B group Qoot and has four London locations – in Covent Garden, Oxford Circus, Tower Bridge and The 02.
The London restaurants are currently closed for dine in because of the tier 3 lockdown restrictions, but delivery is still available from its Covent Garden and Tower Bridge venues.
At the start of the year vegan influencer and founder of Erpingham House Loui Blake joined By Chloe UK as brand partner.