Restaurant Who Filed Bankruptcy Now Makes A Surprising Reopening

September 13, 2024

A restaurant who filed bankruptcy now makes a surprising reopening after it filed an unexpected bankruptcy and went on hiatus.

Foxtrot Cafe has reopened its first location in Chicago following a five-month closure due to bankruptcy and a subsequent lawsuit.

While the news of the reopening is significant, not all are celebrating.

Former employees and loyal customers have expressed their dissatisfaction with the announcement.

In April, the popular chain was forced to shut down all 33 of its locations, resulting in the loss of jobs for approximately 100 corporate staff and 1,000 service employees.

Despite this financial turmoil, Foxtrot has relaunched with a revamped look and a new menu.

Many former employees took to the company’s Instagram to voice their frustrations.

One commented, “Former Foxtrot employee here, how about a severance check?”

Another added, “If it really wasn’t your decision, why don’t you focus on paying the workers who got laid off rather than reopening?”

The backlash continued with vendors chiming in.

An alleged vendor stated, “Former vendor here – still waiting for my payment from March,” while another commented, “Imagine reopening after not paying severance to their employees after screwing them over.”

Foxtrot filed for bankruptcy to alleviate its growing debts after merging with Dom’s Kitchen and Market to form OutFox Hospitality in late 2023.

However, just five months later, the business was shuttered, leaving employees and customers unaware of the impending closure.

At the time, Foxtrot posted on social media, “We explored many avenues to continue the business but found no viable option despite good faith and exhaustive efforts.”

This led to a class-action lawsuit from former employees, who claim OutFox violated the Worker Adjustment and Retraining Notification (WARN) Act by failing to provide the required 60 days’ notice before layoffs.

Reports suggest the company also neglected to pay former employees any unemployment benefits.

Despite the ongoing criticism, Foxtrot plans to open additional locations in Chicago and Dallas in 2025.

Chairman Mike LaVitola expressed optimism about the future, stating, “Our new coffee and food menus are a true reflection of Foxtrot’s founding principle: taking the ingredients we’re passionate about, partnering with the best purveyors, and making them a special part of our day—and yours—every day.”

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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy

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A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.

Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.

The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.

According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.

As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.

Many fans took to social media to express how upset they were with the loss.

“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.

“It was inevitable,” a second person mourned.

“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.

“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”

One person revealed that they had forgotten the rental service had existed.

Some users were not surprised by the announcement.

“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.

“Also kinda remember getting into a feud with them on here.”

One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.

Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.

At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.

The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.

It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.

Also Read: This Massive Mall Retailer Is Now Closing In California

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