In 2015, the vegan celebrity chef Chloe Coscarelli opened the first location of By CHLOE in partnership with ESquared Hospitality. The vegan fast-casual restaurant was an instant success, and the team has gone on to open eight locations from New York, to Boston, to Los Angeles and a New York spin-off bakery, SWEETS By CHLOE.
But trouble began brewing last summer when Coscarelli sued Squared, alleging that Haber wanter her restaurants to serve meat. Now, some nine months later, the partnership has officially spit; an arbitrator mediated a 12-day hearing to review 4,000 pages of transcripts, 600 exhibits, and seven witnesses. The arbitrator ruled in favor of ESquare, determining that several of Coscarelli’s actions qualified as “gross negligence.”
According to documents provided to Eater, Chloe impeded lease negotiations, contract development with guest chefs, and proper account receivable procedures. For ESquared, this is not their first time in the ring with a chef partner: previously, the group operated the BLT empire with Laurent Tourondale, but that split ended in a messy, public battle.
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