Working on Deals with Landlords to Reopen Stores in Chicago, Texas, Sources Say
Foxtrot is making a comeback?
The upscale grocery and convenience store is trying to reopen multiple locations in Chicago and Texas after abruptly closing 33 stores in these areas and Washington, D.C. on April 23.
In Chicago, several landlords are negotiating with Foxtrot’s new ownership group, which reportedly includes the brand’s founder, Mike LaVitola. However, some property owners have declined to work with the company, opting instead to seek new tenants including Southport.
The landlord of Foxtrot’s former Southport Corridor location at 3334 North Southport Avenue is among those moving on, despite receiving a reopening inquiry from the former tenant, according to a source familiar with the property.
Similarly, Daryl Carter’s Avanath, a major multifamily investor that purchased an apartment complex with a former Foxtrot retail space for $119 million last year, is considering other options. “Avanath is currently exploring multiple options for the former Foxtrot space at 2801 North Broadway,” Carter said. “This is one of the most desirable retail locations in Chicago’s Lincoln Park and has generated significant tenant interest.”
The new Foxtrot owners are attempting to retain locations at Avanath’s property as well as stores in the Gold Coast, Fulton Market, West Hubbard and North Wells streets, Old Town, Uptown, and Willis Tower. However, it remains unclear if agreements have been reached with all landlords for these properties.
Foxtrot has secured at least one deal to reopen in Chicago, but it has yet to meet the new lease’s requirements, including paying back rent that has become delinquent in recent weeks, according to a source familiar with the situation. Foxtrot has a couple of weeks to fulfill these obligations, the source said.
Mike LaVitola, who founded Foxtrot in 2013, is believed to be collaborating with New York-based Further Point Enterprises, which recently won an auction for the brand’s intellectual property, inventory, and other assets with a bid of $2.2 million. The auction, led by JPMorgan Chase over a Microsoft Teams meeting, faced criticism from at least one participant, Marc Nathan, who told trade publication C-Store Dive that the financial institution did not consider any other bids.
LaVitola declined to comment through a representative, and Further Point did not respond to requests for comment. The new Foxtrot ownership group is showing more interest in some Chicago locations than others, having renegotiated at least one lease at higher rents while pursuing others with less enthusiasm, sources said. They do not plan to reopen any Washington, D.C. stores, according to sources.
The closures also affected two Dom’s Kitchen & Market stores in Chicago, and it remains unclear what will happen to these locations. The two brands had merged less than a year ago under the company name Outfox Hospitality. Since the closures, at least two Chicago landlords, including a venture of the Podmajersky real estate family, have filed eviction lawsuits against Foxtrot or Outfox ventures, including for its Pilsen location owned by the Podmajerskys, according to Cook County court records.
Former Foxtrot workers have also filed lawsuits against the company, seeking class-action status in Illinois courts for being laid off without the required notice under state law.
Additionally, Foxtrot has been marketing its 25,000-square-foot office space at 167 North Green Street in Fulton Market for sublease in recent months. It is unclear how the new ownership will handle this office space lease, according to The Real Deal.
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