This beloved burger chain is forced to change their names, judge rules
The brand is one of its most valuable assets.
Chloe's beloved fast-based fast food concept announced that it wasFiling for the bankruptcy of Chapter 11 in December. And although the company seems to have reached a sales contract with a new owner, the Burger chain will have to give up a crucial asset - its name.
According toRestaurant BusinessThe parent company of Chloe BC Hospitality Group has agreed to sell the chain to a group of investors for $ 333,000, which will buy the company's assets at bankruptcy and assume liabilities. The agreement is the approval of the pending court.
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However, a judge in a separate mark hearing has ruled that the hospitality of British Columbia does not have the right to sell by the name of Chloé without the agreement of his Original Founder Chloe Coscarelli, who was named the brand according to.
Coscarelli has filed several prosecutions against one of the largest stakeholders since the exit of the company in 2017, one of which was on theContinued use of its name. According toThe Wall Street newspaperThe name of the brand itself is one of the most valuable assets in the field of bankruptcy.
If the agreement goes ahead, the new owners will have six months to propose a new name for the vegan chain and delete the name of Chloe of all "restaurants, supplies, digital media and all other assets", according to Tribunal documents. .
In its bankruptcy, which cited the effects of the current COVID-19 pandemic, the New York-based chain revealed that the monthly income had decreased by 67% since February, forcing the closures of 3 of its 14 pitches .
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