Foxtrot and Dom’s Kitchen & Market, two cafe and deli chains, abruptly closed all locations in multiple states, leaving employees and patrons in a bind. The Snaxshot Substack first reported that companies under Outfox Hospitality would cease operations on April 22. In Illinois, Texas, and the Washington, D.C., region, 33 Foxtrots and two Dom’s Grocery Stores are affected by this closure.
As Snaxshot reported, Outfox was terminating the employment of corporate employees without severance, and Dom’s failed to place routine purchase orders during the week preceding this closure. In the meantime, Foxtrot’s website redirects to a written announcement announcing its closure. A copy of the letter can also be found on its Instagram page.
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“It is with a heavy heart that we must inform you of a difficult decision we have had to make. After much consideration and evaluation, we regret to announce that Foxtrot and Dom’s Kitchen & Market will be closing their doors starting on April 23, 2024,” the announcement reads. In addition, Outfox wrote that it “explored many avenues to continue the business but found no viable option despite good faith and exhaustive efforts.”
“We understand that this news may come as a shock, and we apologize for any inconvenience it may cause,” the company wrote. The Foxtrot and Dom’s Kitchen & Market entered into a merger in late 2023, which resulted in the formation of Outfox Hospitality. The company recently made headlines for a number of management changes, including an influx of new CEOs and layoffs. The sudden closures have prompted people to share their experiences on social media, including one Chicago-area employee who documented her last day on TikTok by writing, “Just found out we’re losing our jobs!!”
Employees filed a class action lawsuit on April 24, a day after the closure and layoffs. A former employee is allegedly the lead plaintiff in the lawsuit, alleging that on Tuesday morning, employees were “terminated immediately without prior notice.”
Nearly 1,000 people were employed by Outfox throughout the company, including about 100 in Illinois, according to Eater Chicago. In most cases, employees said they were given two hours notice or less. In Pilsen, Chicago, protestors gathered outside Foxtrot’s commissary Friday morning, but legal experts disagree on whether Outfox will be held legally responsible.
Earlier this year, unionized former workers from the Signature Room won their lawsuit against restaurant management. They alleged that the company violated the Worker Adjustment and Retraining Notification (WARN) Act, which requires companies to notify the government when they plan a mass layoff.
Eater reviewed an email in which Outfox CEO Rob Twyman notified some ex-Foxtrot workers on Tuesday, April 23, at 11 p.m. that their jobs would be eliminated immediately and that the message was in accordance with state law. It came after the stores closed and did not mention the 60-day notice required by law.
When Foxtrot first launched in 2016, it was a delivery-only app that expanded into the convenience store space, opening locations in Texas and Washington, D.C. Dom’s opened in the Lincoln Park area in 2021. The two companies had major plans to grow and expand. After the closures, a Chapter 7 bankruptcy filing that former employees had warned Eater to watch out for has yet to occur, making it difficult to determine the exact cause.
As the legal drama unfolds, workers are scrambling for jobs and setting up online fundraisers. The Here Here Market, founded by Disha Gulati in 2021, enables lesser-known chefs to establish their own brands nationwide by providing them access to sauces, pasta, and spices.
In recent days, Gulati has received requests from former Foxtrot vendors who want shelf space. She has promised to expedite the process to accommodate them.
Gulati avoided villainizing Outfox, saying she did not know what challenges the company faced. “Them going under might have been inevitable,” she told Eater Chicago. Regarding Outfox’s abrupt closure without informing vendors, she said: “One hundred percent they should have done it differently.”
