Vegan hit by Chloe's tumultuous week continues with new documents that show namesake chef and former partner Chloe Coscarelli was "terminated" by Esquared Hospitality LLC after an arbitrator found sufficient grounds for "gross negligence" on Coscarelli's involvement with the business.

An award document—shared with Gothamist by a spokesperson for ESquared Hospitality and by Chloe co-founder Samantha Wasser—outlines the claims made in arbitration to remove Coscarelli from the business, including attempts to establish the chef's alleged negligence and fraud. While not able to satisfy the requirements to establish fraud, ESquared was able to persuade the arbiter of "gross negligence" and oust Coscarelli from the company.

Though much of the award document has been redacted for confidentiality, it shows the three main points that led to Coscarelli's termination.

First, alleged actions by Coscarelli that led to two vegan chefs backing out of an agreement to publish their recipes on the by Chloe blog, a deal Wasser told Eater would be a "win-win" for the company. Second, the arbitrator deemed Coscarelli's "lack of candor" about payment for a SmartWater advertisement filmed at by Chloe's original Bleecker Street restaurant "troubling," but did not find it to be "gross negligence in connection with the business."

Finally, the arbitrator determined that Coscarelli acted with "gross negligence" in regards to a potential lease near Barnard's campus, which she made "no effort...to solidify" despite admitting it was a "good location" for another By Chloe restaurant, according to the award document. The arbitrator also said Coscarelli's testimony in this instance was "less than candid."

All together, the arbitration hearing lasted nearly two weeks, with seven testifying witnesses and "over 600 hearing exhibits...admitted into evidence."

Despite recent turmoil, Wasser says nothing has or will change about the brand, including recipes, expansion plans and the name. "The by CHLOE. name and brand is going to stay intact 100%," she told Gothamist via email. "Nothing about the by CHLOE. brand will change other than the fact that we are finally able to grow, expand, and bring our concept to more diners nationwide without anyone holding us back—working with a team whose sole goal is to do what's best for our by CHLOE. customers, employees, and the brand as a whole."

In a statement, Coscarelli's lawyer touted the chef's "rock star" status in the vegan community and promised they "[would] not stand for petty people trying to tear down the hard-earned reputation of this pillar of our community."



Coscarelli also supplied a statement of her own via Instagram, explaining the "surreal" situation of being "pushed out" of By Chloe. "I developed every single recipe for the restaurant over the course of several years in my tiny apartment kitchen," Coscarelli says, calling the work "a labor of love." "To me, veganism is so much more than a vehicle for business; it’s a vote for kindness, a dedication to sustainability, and a commitment to compassion."

Wasser also addressed Coscarelli's claim that ESquared's Jimmy Haber wanted to open non-vegan restaurants using Coscarelli's name. "The by CHLOE. brand has never, and will never plan to offer non-vegan items on our menus, nor will we ever open restaurants using the Coscarelli and/or the by CHLOE. name that serve meat, dairy or other non-vegan dishes," Wasser insists. "By CHLOE. is and will always remain a 100% plant-based, vegan restaurant concept. These false claims go against everything that the by CHLOE. brand stands for and the thought that we would ever consider doing such a thing is absurd."