Outfox Hospitality Files for Bankruptcy

Outfox Hospitality, formed after last year’s merger of Foxtrot and Dom’s Kitchen & Market, filed for Chapter 7 bankruptcy on Tuesday, less than one month after shuttering all stores across three states, reports the Chicago Sun-Times.

Chapter 7 bankruptcy means the company stops operating and involves the sale of some assets to pay back creditors, notes attorney Gregory Jones. It differs from Chapter 11 bankruptcy where a company remains operational and restructures to pay back creditors.

The company estimated 5,001 to 10,000 creditors, according to a filing with the U.S. Bankruptcy Court. It claimed between $10 million and $50 million in assets while also claiming the same range in estimated liabilities. Outfox also noted that once administrative costs are paid, there would not be sufficient funds to pay back unsecured creditors.

The bankruptcy filing needs “immediate attention,” because its properties include perishable merchandise that “could quickly deteriorate or lose value without attention,” said Outfox in its court filing. Full Story