Two popular grocery chains, Foxtrot and Dom’s Kitchen & Market, have closed several locations across Chicago following a merger, leaving customers disappointed and employees frustrated.
The merger, announced in November 2023, created Outfox Hospitality. Despite initial hopes for growth, the company has struggled financially and has laid off employees. Outfox Hospitality says it explored several options before deciding to close the stores.
Customers are now forced to find alternatives for their grocery needs, while employees are concerned about the loss of income.
Kayla Pineda, an employee at one of the closed Foxtrot locations, said she was informed of the mass closures via a phone call from her manager on Tuesday morning.
“Luckily I always keep an updated resume,” she said. “But for other people that are just counting on the job, people who don’t have side hustles or anything like that, this is just their main income.”
“It sucks,” she added.
A customer in the neighborhood also sympathized with employees, saying the “carpet got pulled out from underneath them.”
Businesses in Illinois are legally required to give at least a 60-day notice before mass layoffs if they have 75 or more employees. It’s unclear if this action was taken by Outfox Hospitality.
The closures of Foxtrot and Dom’s Kitchen & Market are the latest in a string of grocery store closures in recent years. In 2023, several other grocery chains, including Fresh Thyme Farmers Market and Fairway Market, closed locations due to financial struggles.
The grocery industry is facing a number of challenges, including rising costs, competition from online retailers, and changing consumer habits. As a result, many grocery chains are struggling to remain profitable.
The closures of Foxtrot and Dom’s Kitchen & Market are a reminder of the challenges facing the grocery industry. It remains to be seen whether other grocery chains will be able to weather the storm.
