They say if you want things done right, you have to do them yourself, and that's precisely what this company decided to do after a failed merger, a bankruptcy filing, multiple lawsuits from former employees, and a five-month hiatus. .
Most business owners would find it nearly impossible to get back into business after so many unfortunate events. Still, this restaurant chain defied all odds and refused to let major setbacks hinder its comeback.
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Just six months after bankruptcy, this beloved neighborhood coffee chain has quickly returned from the dead and reopened several stores. But now he wants to expand his presence and his two next reopenings will make his fans in Texas very happy.
The tragic fall of a company merger that went wrong
In November 2023, Foxtrot and Dom's Kitchen & Market joined forces to form Outfox Hospitality. This partnership aimed to develop multiple stores that would feature both the classic convenience store and a neighborhood coffee shop in major US cities, such as the urban areas of Chicago, Texas, and Washington DC.
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However, this dream partnership quickly turned into a nightmare when, just five months later, the newly formed company was forced to file for Chapter 7 bankruptcy to pay off its enormous debt.
The sudden bankruptcy filing left approximately 100 corporate employees and 1,000 service employees out of work without warning, as Outfox did not inform its workforce of the closures beforehand.
Former Outfox employees retaliate against the company and refuse to give up
In April 2024, former Outfox employees filed a class action lawsuit against the company for violating the Worker Adjustment and Retraining Notification (WARN) Act, which requires companies to give employees a minimum of 60 days' notice before any planned closures or mass layoffs.
The initial lawsuit didn't accomplish much as the former employees have yet to receive a dime in restitution. However, the Illinois Department of Labor (IDOL) and former Outfox employees refused to give up so easily.
On October 30, IDOL filed three separate federal bankruptcy lawsuits against Outfox Hospitality, seeking payment of wages and benefits the company owed its employees after violating the WARN Act.
IDOL criticized Outfox once again by filing another lawsuit last month on behalf of 350 former employees of Illinois-based Foxtrot and Dom's Kitchen and Market for violating labor laws. He is asking for $3.8 million in salaries from the bankrupt company created after the merger.
Foxtrot reopens multiple locations in Chicago, Dallas fans want their turn
In early September 2024, Foxtrot began reopening stores under the Foxtrot Café & Market name, no longer affiliated with Outfox Hospitality and without its previous partner, Dom's Kitchen & Market.
Foxtrot currently has five fully reopened locations, all in Chicago. However, after many pleas from Dallas fans for locations in their area to reopen, 2025 may be their lucky year as Foxtrot finally decided to grant their wishes.
More Foxtrot news:
- Previously bankrupt restaurant chain reopens stores and deliveries
- The new owners of a previously bankrupt restaurant chain reopen their premises
- Popular bankrupt restaurant chain reopens its first store
Foxtrot announced it will reopen two restaurants in Dallas, Texas. Both reopenings will occur this month at 3130 Knox Street in Knox-Henderson and 6565 Hillcrest Avenue in University Park.
Foxtrot will be expanding its presence to another state as the new year arrives. It will also collaborate with partners in the Dallas area to grow its list of local businesses. The restaurant chain will also be adding new items to its cafe menu, including tacos, a Texas favorite.
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