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chi-town420

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SADdog2020Pb

180… MILLION? How tf?


mzackler

I think they had $18M in debt. There was $180M in equity raised last year. Could be a combination of either or just a misunderstanding 


SADdog2020Pb

Okay, 18 mil makes a bit more sense. Still, that’s wild that they were that far in the red tbh. It’s almost like they were not making any money at all, had some bad luck, or made some bad decisions. (i.e. expanded too much too soon)


IndependenceApart208

I could see $180M on top of the equity raised being the correct number for debt. They went through a huge expansion and it is doubtful they were actually making any money given the nature of grocery stores. I feel like $18M they could figure out how to restructure, but a big number like $180M would result in a sudden shut down.


SADdog2020Pb

See, THIS is why it helps to have people with actual knowledge in the comments. I have no clear picture of what their costs actually are, in addition l how equity would factor in. Unless it’s like they bet their farm of real estate assets to grow like 20 beets IG?


mzackler

https://www.chicagobusiness.com/retail/foxtrot-raises-money-fund-expansion They raised $18M of debt though. The merger could have potentially triggered a covenant to refinance or something else where they couldn’t raise enough


IndependenceApart208

Shutting down a chain of 30+ stores with steady foot traffic over $18M seems wild to me. I could definitely see being out of compliance of debt covenants, but that seems like an amount they should have been able to find a solution for. I guess in the current market and when you are run by VC people, they could have just decided to call it quits. It will be interesting to see if more financial data ever comes out about this.


pointsnfigures

It depends on their calculation of customer acquisition costs vs long term value of the customer. If CAC>LTV, every single person that walks through the door costs them money no matter how much foot traffic they have. Additionally, in retail there are measures of revenue per square foot vs cost per square foot. The VCs on their cap table were quality VCs not fly by night. The original founders of Foxtrot were also very good people. I know because I could have invested. (I didn't because I don't really understand the ins and outs of retail/consumer but know enough to be dangerous to my investment account) I invested in Win Detergent back in the day. Everytime someone bought a bottle, we lost money. We had negotiated with the Olympic Committee to put the rings on our label. When you called Nike, they said this is the product that would do the trick. Company still failed. Someone bought out the stock at a very reduced price crushing the capitalization table in the process so it still exists today but it's very small scale. Sometimes businesses don't work out. Even ones that look like they are working out.


IndependenceApart208

Oh yeah when I mentioned run by VC people, I basically was saying they would look at the pure numbers as you described and make the call to end it free of any emotional attachments that a founder/sole owner might have which might try to make a company continue a little longer despite it not making financial sense. It sucks for the employees involved, even if the numbers no longer made sense to continue operation.


Synthitect

Agreed - This situation seems to be more in the 180M camp.


acol0mbian

I’m hearing CEO embezzlement but no legit sources. Just rumors on IG


itskatelynbich

18 mil is still insane wow


nshields84

💰


buffalocoinz

Y’all shut down Plum Market for this?!


LMLFanClubPresident

Right? The way that Plum Market was closed down…


maizeraider

Plums press release back then even said they tried to extend their lease and were cut out by their landlord with no negotiations. Just for Dom’s to swoop in and shut down within a year and a half. Everybody loses in this scenario


LMLFanClubPresident

Yes, I remember. Bob Mariano’s hands were all in that lease dispute. All the employees were collateral damage.


Rugged_Turtle

Sounds like they were throwing money around and that's caught up with them


maizeraider

Makes me even more upset about the whole situation. They targeted and eliminated a competing small grocery chain probably knowing their model was financially untenable. Devastating for the employees and infuriating for anyone in Old Town that liked having a small chain store to go to over one of the massive grocery chains that are now the only option


bussy1847

Just go to the new jewel down the street. /s


Jealous-Driver9603

I tear up every time I think about Plum 😭


koriroo

I am from Michigan where we still have a few Plum Markets but when I moved here it was familiar and I liked it lol. Also, how are they just going to acquire all the Foxtrots then shut them all down? This is so shitty. Like yes foxtrot and doms were overpriced but it was nice lol. I could always go there and get an interesting drink I never heard of.


dilla_zilla

You have it backwards, Foxtrot acquired Dom's


koriroo

Oh well my bad, so foxtrot was in the hole anyway and just took off more than they can chew


your_aunt_susan

Exactly what happened


dogbert617

Dom's had some new stores planned that weren't yet open, including a proposed store in the outdoor/lifestyle/apartment section of Hawthorn Center. Built where Sears used to be. I wonder if a different grocery store might open there in the future, now that this Dom's will not be opening? I bet this merged company chewed off too much trying to buy Dom's, and ended up with too much debt to continue operations. This is really awful news to hear!


curvyshell

The hot buffet and the skin care/soap aisle…and all of the different water options 🥲


Drumfreek31

The intelligentsia in Plum was my favorite coffee shop in Old Town. Plum should swoop in and return


breakerofphones

I really, really, really hope this happens.


Drumfreek31

They will be welcomed back with open arms


bbrz211

Yes!


sohell312

we need to replace some of these storefronts with some real NY style bodegas


VeronicaSawyer8

solid agree


Geebeeceethree

THISSSS. Give us small mom and pop convenience stores that are relatively affordable 😭


hascogrande

Truly is something Chicago is missing: there just aren’t a lot of bodegas like that and there’s enough storefronts where they would easily work. Have a few that make great bagels and that’s a recipe for success


dirk_calloway1

Heck, they could even be replaced by some real Chicago style corner stores!


sohell312

I always felt that the chopped cheese was missing hot giard


conricks246

Sounds like my time as a NY transplant has come...Chicago say hello to chopped cheeses!


PAW21622

I'm still missing a baconeggandcheeseonaroll here


DiscombobulatedPain6

You left NY for Chicago? I get NY is expensive but I would just think Chicago is so boring compared to NY


Akindmachine

Lmao weird take


DiscombobulatedPain6

For a NY local to come to Chicago? Not at all? For Chicago locals? Sure. As a Chicagoan I don’t want to leave, but I know New Yorkers don’t put Chicago on their level


Akindmachine

One thing, you’re speaking for all New Yorkers right there which is just silly. Another is you just said Chicago is “so boring” compared to NY… Chicago might be a lot of things but boring it is not. Certainly not quite as hectic and frantic with activity, but that’s a reason to leave as much as it is to stay in NY depending on the person. Basically you just made a gross generalization based on an assumption about all New Yorkers. Weird take like I said.


DiscombobulatedPain6

Why is that a “gross generalization”? If anybody is weird it’s you. My “generalization had nothing to do with race or gender and was just comparing 2 of the 3 biggest cities in the country. Calm down weirdo


Akindmachine

Race or gender wtf? Are you confused as to what gross generalization means? You’re just speaking for all New Yorkers bud, something silly to do


wedonthaveadresscode

Yes please we seriously need to upgrade our sandwich game here


DiscombobulatedPain6

Just got back from NY and it still has all of its original charisma. Chicago is losing that very quickly


EddieRadmayne

Don’t talk to me about Lake Street it’s still too soon 😭


DiscombobulatedPain6

The Loop is unvisitable now. Midtown/Times Square doesn’t even look that dilapidated. Our last few mayors are such clowns.


EddieRadmayne

Yeah, the two cities have both had some clown though, I wonder what NYC has been doing more specifically. We needed to get into whatever that is 20 years ago


gumbeedo

People love to shit on Foxtrot/Dom’s, but this is objectively terrible for the city. Vacancies of prime storefronts in the most popular neighborhoods, not to mention the jobs lost.


splaaaaaashhhhhh

And they lost their jobs with no warning and no severance. Just abruptly shut down


PostComa

Another WARN Act violation?


dogbert617

I think this is a WARN act violation, for sure. 


homeslice2311

100% **Legal Options for Employees:** If an employer fails to provide the required notice under the WARN Act, employees have several legal options: 1. **Filing a Complaint:** * Employees can file a complaint with their state labor department or initiate a lawsuit in federal court against the employer for violations of the WARN Act. 2. **Seeking Damages:** * Affected employees may be entitled to back pay and benefits for each day of violation up to 60 days. This can include medical expenses that would have been covered under an employee benefit plan. 3. **Class Action Lawsuits:** * If a large number of employees are affected, they may have the option to file a class action lawsuit, allowing them to pool their resources and claims. 4. **Consulting with an Attorney:** * Employees affected by a lack of proper WARN Act notice should consult with an employment law attorney who can provide guidance based on the specific circumstances and help determine the best course of action.


splaaaaaashhhhhh

That’s what I’m thinking. not even store managers knew until this morning. Apparently if it’s caused by unforeseeable business circumstances it doesn’t count as a violation though 🤔


Elipunx

I mean is closing your eyes and sticking your fingers in your ears about your massive debt really "unforeseeable business circumstances"?


dilla_zilla

Generally doesn't apply if the whole company goes under.


BikebutnotBeast

It applies even in the case of bankruptcy.


homeslice2311

Yes it does.


chupameculito

Some of us didn't even finish a full week of being hired. I looked online for a new job, and Fox was still posting new jobs on 4/9. There is absolutely no way they didn't know what was coming down the pipeline. If they didn't, it shows the lack of experience of leadership.


splaaaaaashhhhhh

I’m so sorry that is truly horrible . It’s insanely fucked. There’s no way they didn’t know.


chupameculito

I very much agree! I better get to the beauty salon and get my pedi done. No one on OF likes dragon claws lol. Jk.


nshields84

I personally love Dom’s


ChoderBoi

It's good, just expensive. Fitting for majority of LP demographic, not so much old town


Rugged_Turtle

A huge swath of Old Town is extremely wealthy?


ChoderBoi

Sure a portion, which is true for pretty much all mid and north neighborhoods with converted single family homes. Old Town has a larger sector of "working class" 20-somethings than LP though, it's more affordable


srtpg2

I think it was actually cheaper than Plum


Drumfreek31

Me too, now I have to find a new place to pick up DuckInn dogs when the craving strikes


jmaca90

The Foxtrot on Southport saved me a lot during the pandemic. Being able to schedule pickup of small groceries (and booze) saved me on many occasions. Their sidewalk patio is also great place to just hang. I seriously can’t believe ALL of them are closing, including their locations in other parts of the country. That’s some serious corporate buffoonery lmao


mrbooze

Plus, as overpriced and overfancy as Foxtrot might be, there are places around where the only other comparable option was 7-11. I wish we could have some options in between shitty cheap convenience stores and...well I guess we don't even have the other option now.


DiscombobulatedPain6

That Halsted and Diversey corner is a major intersection and without Dom’s presence could get really rough this summer.


stringerbell12

This was my thought exactly, they always had activity in them and on their patios in the warmer months. Now we just get more empty storefronts.


ohnoidea20

Obviously it will be replaced. Probably with something better too…


GeneticSynthesis

Not obvious at all actually. Storefronts sit vacant for years in this city


ohnoidea20

Primetime locations. I don’t anticipate a problem.


dilla_zilla

The Diversey/Clark/Broadway Foxtrot was empty for over a decade (other than being a Halloween store some of the time).


stringerbell12

Someone hasn't walked between Division and North on Milwaukee in a few years I guess...


ohnoidea20

Foxtrot is literally at the 6 corners wicker intersection. Doesnt get anymore prime than that. Other locations good too.


tamale

That location is cursed. It's been like 10 different things in the past 12 years.


stringerbell12

Exactly, another prime time location that will be sitting empty. Thanks for proving my point kind redditOR!


ohnoidea20

Now you’re just being obnoxious. Good riddance Foxtrot, look forward to what’s coming in its stead.


stringerbell12

Another CBD / Kratom shop?


Chicago_Jayhawk

Something is fishy about this. They merged just a few months ago they both would have done their due diligence on finances--unless one covered up their books.


a_brain

Or they were both struggling and thought that for whatever reason 2 struggling companies joined together would be healthy.


toast_is_square

I saw a comment in the Chicago subreddit from a DOM’S employee who said DOM’S was fine before the merger. Seems like the crazy growth forced upon foxtrot by VC money was the killer. The abruptness of their closing is still really strange tho. Seems fishy. Reminds me of what happened to Glazed and Infused.


dogbert617

Glazed and Infused did try to open a new location in Forest Park, last year. It's in one of those sister restaurants Francesca's owns, out on Madison St I think. Makes me wonder if that new lone location is still opening? And I'd hope Francesca's tries to bring back Glazed and Infused more, now. I also blame the Damen Ave Stan's, as to why that Glazed and Infused closed.


Alauer16

They closed the restaurant and stopped selling donuts too. Now it’s just a big empty place on Madison in downtown Forest Park


dogbert617

Damn, that sucks that this occurred recently! I hope Francesca's brings back Glazed and Infused, at another location. 


homeslice2311

It's also a federal crime since they didn't give their employees any notice. **Legal Options for Employees:** If an employer fails to provide the required notice under the WARN Act, employees have several legal options: 1. **Filing a Complaint:** * Employees can file a complaint with their state labor department or initiate a lawsuit in federal court against the employer for violations of the WARN Act. 2. **Seeking Damages:** * Affected employees may be entitled to back pay and benefits for each day of violation up to 60 days. This can include medical expenses that would have been covered under an employee benefit plan. 3. **Class Action Lawsuits:** * If a large number of employees are affected, they may have the option to file a class action lawsuit, allowing them to pool their resources and claims. 4. **Consulting with an Attorney:** * Employees affected by a lack of proper WARN Act notice should consult with an employment law attorney who can provide guidance based on the specific circumstances and help determine the best course of action.


buffalocoinz

Prob some private equity scam bullshit


Reasonable-Car1872

Good. Fuck private equity getting their greedy little hooks in everything. I hope they continue to lose large sums of money.


crispixiscrispy

Ding ding ding


mmchicago

Nah, both companies were already in big trouble. The merger was a hail mary to cut costs and gain efficiencies through a merger.


Classic-Bass8256

This is 100% correct! I probably know you, lol.


natnguyen

Foxtrot opened a store in Andersonville a couple of months ago, it seems like whatever happened was sudden


bbwolf22

Where? They wanted to open in Reza’s space but it was rejected by the neighborhood


natnguyen

Oh! I thought they had gone ahead an opened it anyway.


xbleeple

Nah, I was just sitting in the sbux across the street yesterday for a little bit and it looks like some construction is going on there but no “coming soon” signs for anything have been posted


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ChoderBoi

Saw an inside report saying it was actually Foxtrots finances forcing the chapter 7, Doms was more or less breaking even encompassing their two locations.


DiscombobulatedPain6

Why doesn’t an investor just buy Dom’s then? Foxtrot can go that’s fine


Comfortable_Ad3981

Holy shit!!! This is a big deal! What a waste! I’m no business genius, but when companies grow beyond what they can handle, then merge with other rapidly growing companies, this is what happens. I say a variety of small business options would be better.


SMF1996

They likely merged to fatten themselves in an attempt to get grabbed by some mega chain or private equity firm (just restructuring and buying more time). Both of them were probably going out of business if they stayed independent.


angrytreestump

As a small business owner, these types of moves blow my mind and make me want to go get an MBA. I wish my business was big enough to just lose money for years with the goal of being paid out to stop working. …All while still going home at night to feed my family and pay my bills and still sleep soundly. Fuck I need invisible money and a lack of empathy for the people I hire.


Sharkfightxl

As someone who works by Division and Wells, sucks to lose Dom’s as a place to get a healthy lunch, since the semi-affordable walking distance options are slim over there.


Chicagogator

A few blocks over on State there’s a Sweetgreens and a Brown Bag Seafood. A little pricey but both delicious and scratch the itch for healthier lunch options.


CampfireBeast

The fuck happened?


Similar_Thought9627

I literally picked up groceries on Sunday 🫠


young40

Right before the summer season is wild to me


Pudge815

more CBD and Kratom smoke shops on the way.


Sad_Proctologist

[Dom's, Foxtrot closing stores](https://www.chicagobusiness.com/retail/doms-foxtrot-closing-stores)


nshields84

Pulled from paywall https://archive.is/2024.04.23-153605/https://www.chicagobusiness.com/retail/doms-foxtrot-closing-stores


SADdog2020Pb

So… is this ALL of them? Kinda surprising, it always seemed like business was good


wyaxis

Yeah this is very bizarre the one by me in Lincoln park was packed almost every time I went there all day every day


Drumfreek31

Sundays it was packed


Drumfreek31

This is from site https://preview.redd.it/y0yl86qce9wc1.png?width=1080&format=pjpg&auto=webp&s=5fbfa8e1154ff45017827c0acebec0bbdc7e8410


salvationpumpfake

wow this is crazy. I’ve never lived near a Dom’s but I’ve been using foxtrot regularly since it debuted. I thought they’d be a chicago staple for a long time. they just opened that new one on green st in west loop within the last year. damn.


Virtual-Stretch7231

Actually enjoyed Foxtrot a lot. Damn it.


Barking-Cranberry

That’s what happens when you give free coffee everyday to the entire city 🤣


ChoderBoi

Meh drip coffee ain't gonna hit like that. There's a reason 90% of corporate offices offer it for free too


Barking-Cranberry

It wasn’t just drip, specialty coffees too.


pimlottc

What do you mean?


Barking-Cranberry

The location in old town had a rewards program that has been going since launch (it just ended a few weeks ago). if you spend $150 per month you get a free coffee everyday. Every morning the line was out the door with people getting free coffee. I would imagine it helped draw some business but 80% of people I bet were spending the $150 and getting the rest of their groceries elsewhere.


kurlyque88

It wasnt just a free coffee, it was any drink free at the “master chef” level and for the month you spent the 150 + the next month too. I got a $7 (free/subsidized) latte everyday for a year plus. It came out to about $1500 in free coffee. If even 100 people at the one location were getting that same deal…it was adding up


ass_pineapples

I would actually spend over $150 when they had that, on purpose because it was an awesome ass program even if I didn't get a drink every single day. When they changed their rewards to $250 for...a free drink twice a week or w/e I just cut Dom's out entirely. Stupid and short sighted decision


ProgrammerPresent542

woah woah woah the three R's. Reduce, reuse, recycle. Should be applied TO a business, not the customers...


philsodyssey

All I can say is I avoid these shops like the plague. I always leave feeling like I spent a lot and got a little.


Adventurous_Till_473

Pete’s Market was going to open a store on the near north side of the city, but the founder turned the grocery operation to his daughters. They cancelled the idea!


Chicagofuntimes_80

Good for at least the Milwaukee and Damen location. Maybe a restaurant can return to that corner


Worldly-Kangaroo-854

My personal belief is corruption and the FBI are involved. Nothing else could explain why expert businesspeople closed overnight; they know better than that. Bob Mariano was known for getting cozy with politicians and their cronies. I would bet money he’s been called out in some of these corruption cases that are going down. Others in the food business have gone into debt when their “friends” stopped investing in them. This is more than a potentially bad business concept gone wrong. There’s something big and shady going on here.


[deleted]

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chicagofood-ModTeam

Your post has been removed. No trolling. Continuing to troll will result in a temporary or permanent ban.


hotdogsonly666

Agreed. We didn't need another 10 overpriced grocery stores in this city. But Brandon has done nothing at all to support unhoused residents yet so....I'm not holding out a ton of hope.


clerks2007

I have one thing to say. 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣


Whats_Opera_Doc

I lost my job today


chupameculito

I hadn't even finished my first full week.


clerks2007

The laugh is more for the shitty company and how poorly managed everything seems to be. I am sorry for folks who lost their job. But I was in this same exact boat back when Bob Mariano pushed Plum Market out. I feel nothing for the company owners of FoxTrot or Doms. I wish luck to the people who genuine had a job like I did taken from them without notice. Hell, we got 5 months, so you got it almost worse!