Six months post-merger, grocery store chain enters Chapter 7

(Source: Dom's Kitchen & Market)

Grocery store chains Foxtrot Market and Dom’s Kitchen & Market have filed for Chapter 7 bankruptcy, just six months after their merger.

Outfox Hospitality – the parent company formed after the merger – estimated 5000 to 10,000 creditors, according to documents filed with the bankruptcy court in Delaware. The firm reported assets of between $10 million and $50 million and liabilities in the same range. 

Under Chapter 7 bankruptcy, a company closes and sells off assets to pay creditors.

The company’s board of directors approved the filing late last month after announcing the immediate closures of its stores. Foxtrot operated 32 locations in Chicago, Dallas and Austin, Texas, and Washington, DC, while Dom’s had two stores in Chicago.

Employees at the closed stores later sued the company, accusing it of not giving them the required notice of layoffs or proper severance pay, CBS News reported.

Delivery was also halted, mobile apps were disabled, and store credit cards were cut off. All Foxtrot and Dom’s account credits and member perks became void.

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