New owners of formerly bankrupt restaurant chain reopen locations
According to The Street, After filing for bankruptcy, vanishing for five months, getting served with a lawsuit, and facing damaging backlash, a popular restaurant chain refused to let these major setbacks derail its journey to redemption.
With multiple store locations in major cities like Chicago, Texas, and Washington D.C., this chain quickly became a neighborhood favorite for those living a fast-paced urban life. However, a wrong business decision led to the company’s downfall just as fast as its rise to success.
But as the saying goes, “Only time can heal what reason cannot,” and this neighborhood café seems to be back on its feet, fighting the odds once again.
A Tumultuous Past and Backlash
In late 2023, Foxtrot and Dom’s Kitchen & Market merged to form a new company called Outfox Hospitality. The aim was to combine the concept of convenience stores with café-style foods and expand across major U.S. cities.
Unfortunately, the merger was short-lived. Just five months after its inception, the newly formed company shut down all its locations and filed for Chapter 7 bankruptcy to swiftly clear its debts.
Outfox’s failure to inform its employees before filing bankruptcy resulted in about 100 corporate staff and 1,000 service employees being left jobless. The employees were blindsided by the mass store closure announcement on the very day customers learned of it.
Following this, former employees filed a class-action lawsuit against the company for violating the Worker Adjustment and Retraining Notification Act (WARN), which mandates companies provide 60 days’ notice before mass layoffs or closures.
Also read: Another craft beer, restaurant chain files Chapter 11 bankruptcy
Foxtrot’s Redemption Journey Begins
After a five-month hiatus, Foxtrot reemerged under new ownership, reopening its first location on Chicago’s Gold Coast on September 5. Despite concerns that the chain would take its time reopening more stores, only two weeks later, Foxtrot opened its second location, offering free coffee to celebrate the grand opening.
Mixed Reactions to Foxtrot’s Reopenings
On September 19, Foxtrot’s second store opened on Chicago’s Wells Street, but public reactions were mixed. While some loyal customers welcomed the reopening, others were still upset by unresolved issues from the company’s previous chapter.
Many social media users were eager for the chain’s return to Dallas, with comments like, “Open Dallas next plz” and “How about Dallas??!” appearing in the company’s Instagram comment section.
However, other comments expressed frustration. One user commented, “Ok, so I WANT to support the new owners, but whew, y’all HAVE to directly address and make right what happened.” Another user pointed out the unresolved debts, stating, “Instead of free coffee, maybe you could charge for the coffee and use that money to pay back the vendors you still owe money to.”
A New Foxtrot, a New Future
It’s important to note that the newly reopened Foxtrot is not the same company as Outfox, which filed for bankruptcy and liquidated. This is a new entity with new owners, striving to rebuild the brand’s reputation while moving past its turbulent history.
