Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Street
The Street
Fernanda Tronco

New owners of formerly bankrupt restaurant chain reopen locations

After filing for bankruptcy, vanishing for five months, getting served with a lawsuit, and receiving damaging backlash, a popular restaurant chain refused to let these multiple major setbacks get in the way of its journey to redemption.

With various store locations in major cities across the U.S., including Chicago, Texas, and Washington D.C., this chain quickly became a neighborhood go-to for those living the fast-paced urban life.

Don't miss the move: Subscribe to TheStreet's free daily newsletter

Yet a wrong business move caused this company's success to crumble just as quickly as it was achieved.

But like the saying goes, "Only time can heal what reason cannot," and this neighborhood café seems to have prevailed once again against all odds.

However, some former clients may not be keen to forgive the company's wrongdoings as easily as customers have. 

Foxtrot reopens its second location after multiple store closures.

Chicago Tribune/Getty Images

A turbulent history with tumultuous backlash

Foxtrot and Dom's Kitchen & Market joined forces in late 2023 to form Outfox Hospitality. 

This company was formed to combine regular convenience stores with café foods to expand its footprint across major U.S. cities.

Related: Popular bankrupt restaurant chain reopens first store

However, the merger only lasted five short months before the newly formed company was forced to shut down all its locations and file for Chapter 7 bankruptcy to clear its debts quickly. 

Yet, Outfox failed to inform its employees of the shutdown before filing, which left around 100 corporate employees and 1,000 service employees without jobs. 

The company's employees at the time were incredibly surprised to learn about the mass store closure plans on the very day of the announcement, which was also the same day that it was revealed to regular customers.

After this blindsiding, 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.

Foxtrot strives for redemption after resurfacing

After a five-month hiatus, the new owners of the Foxtrot chain reopened their first location on Sept. 5 on Chicago's Gold Coast.

Related: McDonald's biggest problem may fix itself soon

Following the announcement, Foxtrot stated that it was in no rush to reopen locations and planned to do so at its own pace, which prompted some to begin thinking that this first store reopening would be a one-hit-wonder.  

However, only 14 days later, Foxtrot reopened its second location, promoting free coffee at its grand opening for everyone who attended.

Foxtrot reopens second location, and people have mixed reviews 

Foxtrot opened its second location on Sept. 19 on Chicago's Wells St. Although it was a great achievement for the company's owners, some people still had mixed feelings about the announcement.

Related: Struggling fast-food chain shutting down dozens of restaurants

Because Foxtrot had originally mentioned Dallas as one of the locations where its stores would be reopening, some bombarded the company's Instagram comments section with requests for Foxtrot to return to Dallas.

One user on the social media platform commented: "Open Dallas next plz" 

Another loyal customer commented: "How about Dallas??!"

More Foxtrot:

However, some were not so pleased with the news due to claims that the company still hasn't made its previous vendors and employees whole.

One user expressed mixed feelings about the store's reopenings, commenting, "Ok, so I WANT to support the new owners, but whew, y'all HAVE to directly address and make right what happened."

Another user on the social media platform commented: "Instead of free coffee, maybe you could charge for the coffee and use that money to pay back the vendors you still owe money to."

The new Foxtrot, however, is not the same company as former owner Outfox, which filed for Chapter 7 bankruptcy and liquidated. It is a new entity with new owners. 

Related: Veteran fund manager sees world of pain coming for stocks

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.