Foxtrot reopens 5th Chicago store as Illinois Department of Labor seeks backpay
Foxtrot reopens 5th Chicago store as Illinois Department of Labor seeks backpay
The upscale convenience store Foxtrot is returning to business, opening its fifth Chicago location Thursday after its former parent business filed for Chapter 7 insolvency earlier this year.
Outfox Hospitality, the business created in a union between the convenience store and grocery store Dom’s Kitchen and economy, filed for insolvency in April and closed all of its stores in Illinois, Texas and Washington D.C.
The recent location is located in the River North neighborhood, according Chicago ABC affiliate WLS.
Foxtrot co-founder Mike LaVitola and private stake and enterprise capital firm Further Point Enterprises purchased the assets from the bankrupted business for $2.2 million in an auction in May, according to Eater Chicago.
LaVitola told the food outlet in September that the enterprise plans on reopening “around 15 stores total” in Chicago and Texas. The store had 33 locations before the insolvency.
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USA TODAY reached out to LaVitola but did not receive an immediate response.
Illinois Department of Labor seeking backpay for laid off workers
The Illinois Department of Labor announced that it will continue to seek over $3.8 million in back wages and benefits for over 350 workers affected by the April closures on the same day as the reopening.
The department said in a press release that Outfox did not comply with Illinois alert Act procedures, citing insolvency proceedings. A former employee opened a class action lawsuit against the stores the day after the abrupt closings on the same grounds.
The alert Act requires employers to provide at least 60 days advance written notice of a closure.
The IDOL said that it began its attempt to recover the money through insolvency proceedings in September, when Foxtrot locations reopened.
“In cases such as these, the Department is committed to pursuing all legal paths against employers who fall short to abide by their obligations under alert,” IDOL Director Jane Flanagan said in the press release.
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