An unexpected grocery market now files for liquidation bankruptcy after reporting a snowball of debt to its creditors.
Outfox Hospitality, parent company of Foxtrot Market and Dom’s Kitchen & Market, has filed for Chapter 7 bankruptcy protection, according to filings with the U.S. Bankruptcy Court for the District of Delaware.
The decision to file for Chapter 7 was first made during an April 23 meeting with Outfox’s board of directors, who reviewed the financial condition of the company and each of its direct and indirect subsidiaries.
According to the bankruptcy petition, Outfox has an estimated 5,000 to 10,000 creditors as well as between $10 million and $50 million in both assets and liabilities.
This bankruptcy filing comes nearly a month after Foxtrot and Dom’s unexpectedly ceased operations, and the combined company’s sudden demise has become a major talking point in the c-store and grocery industries.
Last Friday in a foreclosure sale for Foxtrot’s and Dom’s assets, Foxtrot was listed as a debtor, with JPMorgan Chase as its secured creditor.
Even though Outfox had yet to file for bankruptcy at that time, those titles indicated an official filing probably was imminent.
According to the petition, all officers of Outfox, Foxtrot and Dom’s have been “terminated and removed” from the combined company, effective immediately.
Caroline Barry, Outfox’s secretary and treasurer who was at one point Foxtrot’s vice president of strategy, will serve as the company’s designated representative during its bankruptcy process.
The filing notes that all 35 Foxtrot locations and two Dom’s stores still may have perishable goods on shelves and are “in need of immediate attention.”
The Chapter 7 trustee and attorney representing Outfox did not respond by press time when asked for comment.
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Other Economy News Today
A sports retailer now announces a painful closure and bankruptcy after facing linger post-pandemic economic difficulties.
The owners of the sports retail store 4Run3 based in Boston, Massachusetts posted a heartbreaking farewell on Facebook.
“‘We’re sorry…’ Such a truly genuine, yet totally useless phrase. It doesn’t even begin to make up for all of our shortcomings, yet it is all we can say,” the post began.
The runners outlet, 4Run3, was first meant to open in 2020 but had to delay opening for months due to COVID-19 lockdown restrictions.
Tim and Jill Murphy, the owners of the store, said that although delaying opening hit them financially, they still managed to overcome those struggles.
“We took out loans, built an online store, and opened up as soon as we could, even without most of the major shoe brand’s support,” they shared.
“For a little while there, we thought we would make it.”
Despite early optimism on the owners’ part, the past year proved to be extremely challenging on the entrepreneurs.
“Rising interest rates have resulted in monthly payments that exceed what we bring in.
High operating expenses, a large retail space, and piling up bills have finally caught up with us and have brought us to where we are today,” they wrote.
“We have financially lost everything.”
“Our home, our business, our everything. We are truly devastated.”
The devastated couple went onto thank the community for embracing their business and supporting them throughout the years.
“Your belief in us, your loyalty, and your commitment to shopping local mean more to us than we could ever possibly express.
We are so unbelievably grateful for you and so terribly sorry for this disappointment.”
After thanking various community members, staff and other supporters, the heartfelt message shines light on the shame and embarrassment financial difficulties can bring.
“Being financially bankrupt is a terrible thing – the shame it brings with it is unimaginable.”
“But the loss of our relationships with this community is the biggest blow.”
The post ends with a final thank you to the running community and hope for the future to come.
“Our heads will hang low and it will take us years and years to recover and to start our lives over, but we will survive.”
Attached to the goodbye message is a picture of Tim and Jill Murphy embracing in front of a 4Run3 sign.
Over 100 commenters expressed their sadness for the couple and all of the joy the shop and running community has brought them.
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