Yahoo Finance Foxtrot Markets Suddenly Shut Down, Leaving Chicagoans and Other Fans in Shock
It may file for Chapter 7 bankruptcy.
John J. Kim / Chicago Tribune / Tribune News Service via Getty Images
Chicagoans headed to their local Foxtrot Markets on Tuesday, expecting to swing in for coffees, pastries, and perhaps a grab-and-go lunch. Instead, they got a nasty surprise.
With no warning, Foxtrot abruptly shut all 33 of its stores in Chicago, Texas, and Washington, D.C., as well as two Dom’s Kitchen and Market stores, a small upscale Chicago grocery chain that it acquired in November.
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In an announcement, Outfox Hospitality said, “We explored many avenues to continue the business but found no viable option despite good faith and exhaustive efforts.” Along with closing its stores, the Dom’s Go/Foxtrot app was shut down, and all customer focused operations, such as delivery, were disabled. Snaxshot, a Substack newsletter, reported that Outfox Hospitality planned to seek Chapter 7 bankruptcy, meaning it would be liquidating its properties. The company did not mention a bankruptcy filing in its statement and did not immediately respond to a request for comment on that report.
Foxtrot, which called itself “not just a convenience store, but a lifestyle brand,” gave few outward indications that it was in financial straits.
Only three weeks ago, the store was touting new menu items for spring, including a coffee-date smoothie, veggie breakfast taco, and pepperoni pizza, “the perfect homemade companions for cozy mornings or sunny afternoons,” it said in a press release.
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Founded in 2013 as a beverage delivery app aimed at University of Chicago students, Foxtrot opened its first brick and mortar store in 2015. Long before the pandemic forced grocers to embrace options beyond in-person shopping, Foxtrot promised Chicagoans 30-minute delivery of wine, craft beer, gifts, and pantry items, saying it would be a “better kind of convenience store.”
The concept caught investors’ eye, helping it land an initial round of $1.1 million in funding in 2015, and a second round of $6 million in 2018, and another $18.6 million last year. In a 2018 Forbes interview with me, cofounder Michael LaVitola said the markets had a specific focus and target customer, whose average age was 32, although Chicagoans of all ages shopped in its markets.
John J. Kim / Chicago Tribune / Tribune News Service via Getty Images
Long before the pandemic forced grocers to embrace options beyond in-person shopping, Foxtrot promised Chicagoans 30-minute delivery of wine, craft beer, gifts, and pantry items.Foxtrot stores became a common sight across the city, including a prominent outlet on North Michigan Avenue in the former Chicago Tribune Building, which is now condominiums, and another in the Willis Tower (aka the Sears Tower).
In many North Side neighborhoods, the markets turned into hangouts, with patrons perched on stools to enjoy their coffee or beer, or relaxing at outdoor tables, some working on laptops.
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Boosted by investments, Foxtrot ultimately expanded beyond the Windy City to Dallas, Austin and four locations in trendy metropolitan Washington D.C. neighborhoods. Foxtrot was widely seen as a model for the smaller format grocery stores that in the works from Whole Foods and Trader Joe, which are both setting up new format shops in New York City.
Dom’s, meanwhile, was the brainchild of Bob Mariano, who ran his own grocery brand, Mariano’s, until it was purchased by Kroger. He left the company and launched the first Dom’s grocery in 2021. It featured vegetable butchers, who could prep a customer’s veggie selections for stir fries, pasta substitutes and other entrees. Dom’s also sold eye-catching salads, sandwiches and carry out foods, making it a fresh food version of a Foxtrot store.
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"I shopped at Dom's, which was the Chicago-based lux grocery group that merged with Foxtrot. It was the kind of place you stop in to pick up a few things for a cocktail party, but the product selection and prices didn't make it feel designed for everyday grocery shopping," said Chandra Ram, Food & Wine's associate editorial director of food. "While I appreciated it when I wanted to pick up some good cheeses, flowers, wine, and fancy non-alcoholic canned drinks, everything was notably expensive. When Whole Foods is the less expensive option, you have to have more reasons to bring customers back in."
On social media Tuesday, Foxtrot fans mourned the loss of their beloved destinations. “Wow! No more Foxtrot in DC or the rest of the country,” posted an X account called Washingtonian Problems. But there was some solace: an X user called Jessica Sidman said employees at one DC store were handing out free bottles of wine.
There might not be much for a bankruptcy court to liquidate after all, if Outfox takes that step. All the assets may end up being consumed.
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