On Tuesday, Foxtrot and Dom's Kitchen & Market abruptly closed all of their stores in Illinois, Texas, and the Washington, D.C. area as they likely filed for bankruptcy. His two Chicago-based grocery stores merged five months ago and became known as Outfox Hospitality.
The closures affected two Dom's stores and 33 Foxtrot stores in the Chicago, Austin, Dallas, and Washington, D.C., areas. Outfox employs about 1,000 people across multiple states, with nearly 100 full-time employees in Chicago. Figures for part-time employees have not been made public at the time of writing.
There were no notifications on the Worker Adjustment and Retraining Notification (WARN) reporting pages in Illinois or Texas, which track notifications of mass layoffs. Illinois law requires companies with 75 full-time employees to provide notice of termination with a 60-day warning, regardless of whether they file for bankruptcy.
At least one worker filed a lawsuit in federal court in Chicago alleging that Outfox Hospitality violated federal and state red flag laws when it fired workers mid-shift without prior notice on Tuesday. The lawsuit seeks compensation for back pay and benefits for affected workers.
The resulting layoffs are part of a global jobs attack, with hundreds of thousands of jobs being cut in the United States alone. Just recently, Tesla announced more than 14,000 layoffs as its fascistic billionaire CEO Elon Musk sought to maintain profits amid declining sales.
In announcing its sudden closure, Outfox released a harsh statement in the language of a corporate lawyer. Part of the statement reads: “This decision was not made lightly and we understand the impact it will have on you, our loyal customers, and our dedicated team members. Thank you for your support over the years. Thank you very much for your patronage. It is our greatest honor to be able to improve the everyday life and create a great shopping experience for people who love food as much as we do. We know this news is shocking and we apologize for any inconvenience caused during this difficult time. Thank you for your understanding during this time.”
The statement also confirms that related apps, Dom's Go and Foxtrot Apps, are now retired, and that all Foxtrot and Dom's credits are worthless.
Foxtrot started in Chicago in 2016 as a delivery-only app focused on alcohol delivery. The company's profits soared during the pandemic as bars closed during lockdowns. The company eventually transformed into an upscale convenience store reminiscent of a boutique 7-Eleven.
The company expanded rapidly. In 2023, the company raised $18.6 million in debt to fund expansion to 33 locations in Chicago, Austin and Dallas, Texas, and the Washington, DC area.
In February, the company announced the appointment of Rob Twyman, a 27-year Whole Foods executive, as its new CEO. But the weeks leading up to the closure are uncertain. According to the website Snapshot, multiple company executives began quitting last week, as reported by Eater Chicago.
Meanwhile, outside the shuttered Foxtrot store on Chicago's Division Street, a group of fired Foxtrot employees sat teary-eyed and somber. Across from it was the entrance to the store, with a sign announcing the store's closure. I could see the ice cream package that had been delivered that morning through the door, now melted.
Walia, who worked at the Foxtrot store for two years, told WSWS: Items are still coming in, but I'm not getting paid for this. You have to let them know, “Hey, turn around.” The delivery person also doesn't know what to do. We are delivering barrels. We currently have freshly delivered ice cream in the store. This is a box of ice cream worth a thousand dollars. ”
When asked if he knew the company was struggling enough to suddenly close its stores, Walia said, “I knew the company was struggling, but closing all of its stores was a shock.” he said.
Jay, another employee who had worked at the location for six months, said, “The change in inventory was noticeable. They said they were negotiating with the vendor, suggesting there was a problem. Delivery. There were shortages and weird shift schedules, but no one said it would lead to something like this.”
Walia further added: We had a niche. The question was how quickly the company expanded after the pandemic. Investors seemed mixed about our direction. Some investments worked well, others didn't. I just wasn't achieving my goals. ”
Jay continued, “There was a complete disconnect between us, the workers, and the upper management. They kept buying more stuff and more items. We told them every day, 'Hey, this. I tried my best to say, “It's not selling well.'' But they were sending us more stuff and blaming us for not selling. There was wine in the basement that didn't sell. Inventory has decreased significantly. ”
Regarding the recent merger with Dom's Kitchen, Jay said: They are well known and combining their food options with ours seemed promising. ”
On the issue of benefits, Walia said, “Only full-time people received benefits, but most of us were employed part-time, so that was rare. Even if you qualify for benefits, your working hours will only be cut when you need it most.'' Jay added: “We recently introduced gratuities for card transactions, but it's too little. And it's too late. Now they're shutting everything down without warning. Just a cold goodbye.”
A worker sitting next to Jay added, “We're funding wars and committing genocide in Palestine, and yet people don't have access to terrible health care.”
Another worker interjected: “We feel betrayed, most of us. We are an essential part of the restaurant industry, but we are often overlooked. And it's not just ignored. We feel like we're disposable. I feel like I'm just a cog in a machine that can be replaced at any time. This whole situation shows that under capitalism, everything is temporary and anyone can be cut out.”
Jay replied: And as we emerge from the pandemic, we will be hit even harder by the stark disparity between corporate and ground-level employees. We make our day-to-day operations possible, but it's clear that when decisions like this are made, we are the last to know and the first to feel the impact. ”
Another worker added: It's about the community we've built, but it disappears overnight. We've built relationships and a loyal customer base, and now we're just being told to pack our bags without any foresight. ”
