Kickstarting a business is a challenging task on its own, and it gets even harder when trying to get back up after filing for bankruptcy, getting sued by your own employees, and going on a five-month hiatus.
Most business owners would find it nearly impossible to make a comeback after so many unfortunate events. However, this formerly bankrupt business defied all odds, this time under a different leadership.
In November 2023, Foxtrot and Dom's Kitchen & Market joined forces to form Outfox Hospitality. This merger aimed to develop multiple stores that would feature both the classic convenience store and a neighborhood café spanning major cities in the U.S., such as urban areas of Chicago, Texas, and Washington D.C.
Related: Popular bankrupt restaurant chain reopens first store
However, this sweet partnership quickly turned sour because the newly formed company was forced to file for Chapter 7 bankruptcy to pay off its massive debt only five months later.
The sudden bankruptcy filing left approximately 100 corporate employees and 1,000 service employees jobless without prior warning, as Outfox failed to inform its workforce of the closures beforehand.
Former Outfox employees strike back with multiple lawsuits
In April of last year, Outfox's former employees filed a class-action lawsuit against the company for violating the Worker Adjustment and Retraining Notification Act (WARN), which requires companies to give employees 60 days' notice before any planned closures or mass layoffs.
However, this would be the first lawsuit of many since the initial lawsuit was fruitless for the former employees.
A series of other lawsuits followed in hopes of receiving some restitution after the sudden job losses. The Illinois Department of Labor (IDOL) filed three separate federal bankruptcy claims against Outfox Hospitality last October over the WARN law violations.
Because no resolution had been reached yet, only two months later, IDOL hit Outfox with another lawsuit on behalf of 350 Illinois-based former Foxtrot and Dom's Kitchen and Market employees for infringing labor laws. The lawsuit, which remains ongoing, seeks $3.8 million in wages from the bankrupt company created after the merger.
Foxtrot reopens multiple locations and expands its market
In early September last year, Foxtrot began reopening stores in the Chicago area under the name Foxtrot Café & Market, which is no longer affiliated with Outfox Hospitality and without its previous partner, Dom's Kitchen & Market.
The chain currently has six fully reopened Chicago locations, which have been incredibly successful in the community. Because of this victorious return, Foxtrot decided to expand to another city.
Related: Formerly bankrupt restaurant chain reopens locations, students are happy
After much pleading from Dallas fans for locations in their area to reopen, Foxtrot reopened its first Dallas location this January and, less than a month later, opened a second location in University Park, the home of Southern Methodist University (SMU).
To add some Texas flavors to its Dallas locations, Foxtrot introduced a brand new menu with more food options, including tacos, paninis, bowls, and local treats.
Foxtrot launches app and returns online ordering in Dallas
Although Foxtrot seems to be getting back into customers' good graces, it still wants to provide them with new and improved services to make their experience even better than before.
This led Foxtrot to launch its own app last October to return its delivery services across all its Chicago locations, allowing customers to get their favorite items sent straight to their doorsteps.
The Foxtrot app also offers order-ahead services so customers who may find themselves in the morning rush won't have to wait in line. Instead, they can step into their nearest location and quickly pick up their items.
More Foxtrot News:
- Formerly bankrupt restaurant chain reopens locations, delights fans
- Formerly bankrupt restaurant chain reopens fifth location
- Bankrupt restaurant chain gets sued by angry employees
However, this was a perk only Chicago customers could benefit from until now because, as of this month, Dallas customers can now enjoy the same Foxtrot app perks as their fellow Chicagoans.
Additionally, Foxtrot unveiled a brand-new merchandise collection for its fans, including multiple hats, sweatshirts, and bottle designs, which can also be ordered through the app.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
