Foxtrot and Dom’s Kitchen & Market, known for their grocery and restaurant–style mashup, are reportedly headed for bankruptcy after shutting down all stores and laying off employees.

The move comes about five months after the two sides merged to form Outfox Hospitality, a parent company that is preparing to file for Chapter 7 bankruptcy (court proceedings that end an entity’s operations), according to Substack newsletter Snaxshot. The grocers officially closed their doors on Tuesday across 33 Foxtrots in Chicago, Austin, Dallas, and the Washington, D.C. area and two Dom’s locations in Chicago. The company said it explored several options to continue business, but “found no viable option despite good faith and exhaustive efforts.”

According to Eater Chicago, employees were informed Tuesday morning, only hours before stores were scheduled to permanently close.

“This decision has not been made lightly, and we understand the impact it will have on you, our loyal customers, as well as our dedicated team members,” the combined company said in a social media statement. “We want to express our sincerest gratitude for your support and patronage throughout the years. It has been our highest honor to elevate the everyday and create a remarkable shopping experience for people who love food as much as we do. It has been a privilege serving you and being a part of your everyday lives.

Dom’s, founded in 2021, was a gourmet grocery store hybrid known for high-quality ingredients, fresh produce, and prepared foods. Locations featured seating areas and a food hall offering a variety of options, such as sandwiches, salads, soups, artisanal pizzas, and more. Foxtrot, which began as a delivery app before launching into brick-and-mortar retail, was a chain offering upscale convenience shopping, including a selection of artisanal and locally sourced products, along with a cafe and delivery service.

In February, Outfox hired Whole Foods veteran Rob Twyman as CEO. He replaced Liz Williams, who left to become chief executive of El Pollo Loco. At the beginning of 2022, Foxtrot announced $100 million in fundraising and had plans to expand into places like New York, Nashville, and Miami.

Finance, Story