On Tuesday, Outfox Hospitality — the newly formed entity composed of the combined efforts of Foxtrot and Dom’s Kitchen & Market — shocked the industry by announcing the abrupt closing of its 33 Foxtrot and two Dom’s locations.
As it turns out, the news was just as surprising to consumers as it was to employees, as a former employee has since filed a lawsuit against Outfox Hospitality for not receiving prior notice of the layoffs, according to USA TODAY.
The lawsuit — filed in an Illinois court just one day after the company closed its doors — is currently seeking other class-action members from the pool of laid off employees across Chicago, Austin, Dallas and Washington, D.C.
The lawsuit claims that Outfox Hospitality may be in violation of the Worker Adjustment and Retraining Notification Act (WARN) by not providing prior notice to employees. The WARN ACT states that employers must provide 60 days of advanced written notice in the event of a closure.
The Rise And Fall Of OutFox Hospitality
Outfox Hospitality was a young entity — the announcement of the merger between Foxtrot and Dom’s came in late November 2023.
From the outside, the merger seemed to be successful, with Foxtrot carrying momentum from a recent store opening in Washington, D.C., just a month prior to the announcement. Then, in February of this year, the company named Rob Twyman as its new CEO.
Foxtrot and Dom’s showed no external signs of struggle, which is why the industry is so shocked by the abrupt closure.
USA TODAY reported that some employees went into work just like it was a regular day, and only learned of the closure when they arrived.
That same day, Foxtrot and Dom’s suspended all delivery services, shut down their mobile apps and cancelled all credit cards.
Closing Statement
Outfox Hospitality shared the following statement on the Foxtrot and Dom’s websites:
“Dear Dom’s Kitchen & Market and Foxtrot Customers,
It is with a heavy heart that we must inform you of a difficult decision we have had to make. After much consideration and evaluation, we regret to announce that Foxtrot and Dom’s Kitchen & Market will be closing their doors starting on April 23, 2024. The closure affects two Dom’s stores and 33 Foxtrots across Chicago, Austin, Dallas, D.C., areas. We explored many avenues to continue the business but found no viable option despite good faith and exhaustive efforts.
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. 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.
We understand that this news may come as a shock, and we apologize for any inconvenience it may cause. We genuinely appreciate your understanding during this challenging time.
We would like to take this opportunity to thank each and every one of you for your loyalty and trust in Dom’s and Foxtrot. It has been an honor to serve you, and we will cherish the memories we have created together. We would also like to thank our team members who have committed themselves over the years to providing a unique selection of quality foods and creating an outstanding in-store customer experience. Lastly, we would like to thank our many partners, without whom we would not have been able to build such a strong brand.”
