Dive Brief:
- Outfox Hospitality, parent company of Foxtrot Market and Dom’s Kitchen & Market, on Tuesday filed for Chapter 7 bankruptcy protection, according to filings with the U.S. Bankruptcy Court for the District of Delaware.
- The decision to file for Chapter 7 was made during an April 23 meeting with Outfox’s board of directors, who reviewed the financial condition of the company and each of its direct and indirect subsidiaries. Outfox has an estimated 5,000 to 10,000 creditors as well as between $10 million and $50 million in both assets and liabilities, according to the bankruptcy petition.
- This bankruptcy filing comes nearly a month after Foxtrot and Dom’s unexpectedly ceased operations.
Dive Insight:
Last Friday in a foreclosure sale for Foxtrot’s and Dom’s assets, Foxtrot was listed as a debtor, with JPMorgan Chase as its secured creditor. Even though Outfox had yet to file for bankruptcy at that time, those titles indicated an official filing likely was imminent.
All officers of Outfox, Foxtrot and Dom’s have been “terminated and removed” from the combined company, effective immediately, according to the petition. Caroline Barry, Outfox’s secretary and treasurer who was at one point Foxtrot’s vice president of strategy, will serve as the company’s designated representative during its bankruptcy process.
The filing notes that all 35 Foxtrot locations and two Dom’s stores still may have perishable goods on shelves and are “in need of immediate attention.”
The Chapter 7 trustee and attorney representing Outfox did not respond by press time when asked for comment.
Foxtrot’s inventory, intellectual property, accounts and other assets that JPMorgan had security interest in were sold for $2.2 million in last week’s foreclosure sale to holding company Further Point Enterprises. The assets for Dom’s — which had a starting price of $200,000 — were not acquired.
Chicago-based Foxtrot, which became popular over the past few years for its fresh food and niche and local products, merged with Dom’s last November to form Outfox Hospitality. Shortly after the deal, the combined company’s CEO stepped down and former Whole Foods executive Rob Twyman took the top leadership role.
