Cafe and deli market chains Foxtrot and Dom's Kitchen & Market suddenly closed all of their stores in multiple states, leaving employees and customers in turmoil.
On April 22nd, Snaxshot Substack first reported that the companies operating under Outfox Hospitality would cease all operations. The closure affects 33 Foxtrots stores and two Dom's Grocery stores in the Illinois, Texas and Washington, D.C., areas.
Snapshot reported that Outfox plans to terminate employment of corporate employees (according to Snapshot, employees will be fired without severance pay). Dom's also said it had not filled out any recurring purchase orders in the week leading up to the closure.
The Foxtrot website is now redirecting to a written announcement confirming the closure. The letter is also posted on his Instagram page.
“It is with heavy hearts that we have to share with you the 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 closed until April 2024. We are pleased to announce that we will be closing on the 23rd,” the announcement reads.
Outfox went on to write that it had “explored numerous avenues to continue operating, but despite our good faith and exhaustive efforts, we have not found a viable option.”
“We understand that this news is shocking and we apologize for any inconvenience this may cause,” the company said in a statement.
In late 2023, Foxtrot and Dom's Kitchen & Market announced a merger, creating an entity called Outfox Hospitality. In recent years, the company has made headlines for multiple management changes, including a new CEO and layoffs.
Representatives for Outfox did not immediately respond to TODAY.com's request for comment.
On social media, people have been sharing their experiences during the sudden shutdown, including one person who identified himself as a Chicago-area employee who took to TikTok to detail his last day, writing, “I don't know how much work we're doing.'' “I just realized that I'm missing something!!,” one person wrote.
TikTok user @sadkiwigirl said in the now-viral video, before asking her co-worker what time it was, “I just found out the store will be closing at 12pm today.”
“10:14,” they reply.
The TikToker continued, “And by shutting down, I mean the whole chain shutting down.”
After she expresses confusion about when or if she should take a break, makes the last cafeteria, and thinks about what to tell the customers who are eating in the cafeteria or working on their laptops, the video ends with Cut to an empty store.
The on-screen caption “We kicked out all the customers!!” :,(” appears.
Elsewhere on the web, some X users and Redditors talked about the products they had and enjoyed, while others focused on the products. Disappointment over a locked door There are some places where the shutters are closed. People also said large crowds were seen gathering at closed stores, with some people handing out free wine.
On April 24, the day after the closure and resulting layoffs, a class action lawsuit was filed on behalf of the employees. According to legal filings in which former employees are the lead plaintiffs, they were “immediately terminated without prior notice” on Tuesday morning.
Class action attorney Syed H. Hussain told TODAY.com that his team is working to obtain compensation for former employees under the Worker Adjustment and Retraining Notification (WARN) Act. Told.
“The firing of hundreds of employees across the country without notice is abhorrent and should be set as an example,” Hussein said. “Hundreds of people are currently out of work in Chicago alone. Employees should never be afraid to stand up for the rights they are entitled to.”
“The question will be whether this company failed to meet its obligations under the state and federal WARN Act,” New Jersey-based attorney Christopher J. Keating told TODAY.com. He owns the Keating Law Firm and often represents employees in labor-based disputes.
Keating said employment lawyers and the fired workers will consider whether Outfox will pay all the wages employees earned up until the closure.
“Under state and federal law, including the Fair Labor Standards Act, the government is obligated to pay all employees every penny earned for their time, and these employees must be paid on time and in full. You have to pay,” he continued.
Additionally, the WARN Act is a federal law that requires employers with 100 or more employees to provide at least 60 days' written notice before closing or mass layoffs. Some states have enacted their own laws that provide greater protection.
Outfox employs nearly 1,000 people companywide, with nearly 100 in Illinois, according to Eater Chicago. Many employees said they were often notified within two hours.
Illinois' WARN law applies only to businesses with 75 or more employees, so Outfox's layoffs likely apply, but Illinois' WARN report does not include the company's closure notice. Not published.
Sarah M. Brown, a clinical assistant professor at Northwestern Pritzker Law, told TODAY.com that while Outfox may have violated the Warning Act, one of its exceptions may apply. told.
“Generally speaking, a company may be exempt from required notifications if it is considered a 'distressed company,'” Brown said. He said the exemption meant the company was actively seeking capital and would have believed in good faith that notifying employees would adversely affect its ability to obtain capital and prevent layoffs. Point out.
Brown also said there are exceptions for “unforeseen business circumstances.”
“On the other hand, companies cannot avoid notification requirements by filing for bankruptcy if they know that mass layoffs are likely to occur,” she continues.
“The warning law is just one part of the analysis,” Keating said. “Not only are we concerned about our employees losing their jobs in the future, but the law requires them to be fully recovered and paid every penny for the hours they have already worked during this pay cycle. Masu.”
