Outfox Hospitality, parent company of urban convenience-store chain Foxtrot and small-format grocer Dom’s Kitchen & Market, has filed a petition in the U.S. Bankruptcy Court for the District of Delaware for relief under Chapter 7 of the federal bankruptcy code.
Chicago-based Foxtrot had 33 locations in Chicago, Washington, D.C., Dallas and Austin, Texas. Dom’s had two stores in Chicago. The bankruptcy petition included several corporate entities operating in those geographies.
Outfox, in its bankruptcy filing, said it would only have enough money to cover administrative expenses and said it would not have any funds to pay creditors. The company estimates having between 5,001 and 10,000 creditors, with assets between $10 million and $50 million—the same as its estimated liabilities.
Outfox Hospitality abruptly closed all Foxtrot and Dom’s stores on April 23 with no notice to employees. Following the closures, some employees have filed lawsuits against the company, alleging they were not provided with the required 60-day notice before their jobs were terminated.
Foxtrot’s assets were sold at auction on May 10 for approximately $2.2 million, according to a report by Crain’s Chicago Business. The buyer was holding company Further Point Enterprises.
The auction of Foxtrot’s assets took place over a Microsoft Teams call and was conducted by JPMorgan Chase Bank, to which Foxtrot was a debtor, through its counsel, DLA Piper. The closing deadline was for midday May 13, and the sale was final, Crain’s reported.
The assets for Dom’s Kitchen & Market were also up for auction Friday, but were not sold, according to the report.
East Hampton, New York-based Further Point’s current portfolio includes Odd Bird, Bandits NYC and more, according to its website. Foxtrot was already listed as of May 10.
JPMorgan Chase Bank and Further Point Enterprises did not respond to CSP’s requests for more details.
The closures of Foxtrot and Dom’s came less than six months after the companies announced a merger that formed Outfox Hospitality. Foxtrot was founded in 2014 as a delivery company selling snacks, beer and wine, and it grew into a corner store-restaurant hybrid that featured high-end package goods, prepared foods, coffee bars and wine bars. The chain raised more than $160 million to fuel its growth over its lifetime.
Several Chicago landlords are considering deals with the new owners of Foxtrot, according to a report by The Real Deal. People familiar with the matter told the news outlet that Foxtrot founder Mike LaVitola is interested in reviving the brand and is working with Further Point. Some other Chicago property owners have already refused to work with the company to reopen stores, opting instead to try to get new tenants, the report said.
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