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Disgraced celebrity chef Mario Batali surrenders ownership stakes in all of his restaurants

Key Points
  • The partnership between disgraced chef Mario Batali and the Bastianich family has dissolved. 
  • Batali has also sold in his stake in Eataly, according to a copy of a letter sent to employees Wednesday.
  • The celebrity chef was accused of sexual harassment and assault more than a year ago.
Mario Batali
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Celebrity chef Mario Batali is officially giving up his restaurants after admitting to sexual misconduct more than a year ago.

The partnership between Batali and the Bastianich family has officially dissolved, according to a copy of a letter the Batali & Bastianich Hospitality Group sent to employees Wednesday. Tanya Bastianich Manuali will run day-to-day operations at a new company that will replace Batali & Bastianich Hospitality, according to the letter.

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Mario Batali steps away from restaurant empire following sexual misconduct allegations

The New York Times first reported Batali's divestment. Manuali and her brother Joe Bastianich bought out Batali's shares in all of his restaurants, the Times reported. The Batali & Bastianich Hospitality Group manages about 20 restaurants, including New York-based Del Posta and Lupa, according to its website.

Eataly spokesman Chris Giglio said in a statement to CNBC that the company is in the process of acquiring Batali's minority stake in the Italian chain of food halls.

In December of 2017, online food publication Eater reported accusations of sexual harassment and assault from four women against the celebrity chef. In an apology to fans via his newsletter, Batali infamously included a recipe for pizza dough cinnamon rolls. After the accusations surfaced, Batali stepped back from his restaurant business, and Eataly removed his products and books from their locations.

The Bastianich family dismantled their partnership with the disgraced chef and shuttered restaurants as the backlash continued.

At the beginning of this year, the New York Police Department closed three investigations into sexual assault allegations against Batali, citing a lack of evidence to make an arrest.

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The #MeToo movement led a number of women to come forward in 2017 and 2018 to address a culture of sexual harassment in the restaurant and other industries. Other well-known chefs and restaurateurs who were accused of sexual misconduct include John Besh, Ken Friedman and Charlie Hallowell.

Batali did not immediately respond to a request for comment from CNBC.

Read more about Mario Batali surrendering his restaurants here.