Foxtrot and Dom's Market Face Class Action Lawsuit Over Mass Layoffs

Foxtrot, Dom's Market, and Outfox Hospitality face a class action lawsuit for abruptly closing stores and laying off over 1,000 employees without required 60-day notice, leaving workers jobless and customers shocked.

Bijay Laxmi
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Foxtrot and Dom's Market Face Class Action Lawsuit Over Mass Layoffs

Foxtrot and Dom's Market Face Class Action Lawsuit Over Mass Layoffs

Foxtrot, Dom's Market, and their parent company Outfox Hospitality are facing a class action lawsuit alleging they violated federal and state laws by abruptly closing all 33 Foxtrot and 2 Dom's Market stores nationwide on April 25, 2023, and laying off over 1,000 employees without providing the required 60-day notice. The lawsuit, filed in federal court in Chicago, seeks backpay and benefits for the affected workers.

The named plaintiff, Jamil Ladell Moore, claims he and other employees were "terminated immediately without any prior notice" when they showed up for work on April 25. "The lawsuit seeks damages and other relief permitted under the WARN and IWARN acts," according to the complaint. The federal Worker Adjustment and Retraining Notification (WARN) Act and the Illinois WARN Act require companies to provide 60 days' advance written notice before mass layoffs.

Foxtrot was an upscale convenience store chain, while Dom's was an omnichannel food experience provider. The two companies had announced a merger in late 2022 to form Outfox Hospitality under new CEO Rob Twyman. However, just months later, Outfox stated that despite exploring many options to continue the business, they found no viable path forward and made the "difficult decision" to permanently close all stores.

Why this matters: The abrupt shutdowns left over 1,000 employees jobless without warning and shocked customers. The case highlights the importance of companies following labor laws during mass layoffs and the devastating impact on workers when proper notice isn't given.

The Illinois Department of Labor has opened an investigation to determine if any WARN Act violations occurred and is providing support services for the dislocated workers. Sources say Outfox had been meeting with investors, landlords, and bankers in recent weeks to stay afloat, and may now be looking at filing for bankruptcy protection. The lawsuit is still in the early stages and may take over a year to reach trial, but former employees are encouraged to contact the law firm representing the plaintiff to potentially join the class action.

Key Takeaways

  • Foxtrot, Dom's, and Outfox Hospitality face class action lawsuit over abrupt closures.
  • Over 1,000 employees laid off without required 60-day notice under WARN Act.
  • Lawsuit seeks backpay and benefits for affected workers due to WARN Act violations.
  • Illinois Dept. of Labor investigating, providing support for dislocated workers.
  • Outfox may file for bankruptcy as it failed to find viable path forward.