ronnie_suburban wrote:I know. It's utterly bizarre seeing a company getting out that far. We typically put someone on COD terms as soon as they exceed their credit limit or become more than 30 days past due. Why would you keep selling someone who isn't paying? I mean, if they're not paying, you're not really selling. At that point, you're just giving.

=R=

Admittedly it strains credulity, but I can think of only one reason a supplier would do that--which is that the continued existence of that store as a venue for the supplier's product is vital to the continued existence of the supplier. If a store is "the only game in town" for a supplier, then cutting off that store and possibly hastening its demise may be seen by the supplier as cutting off his nose to spite his face. He may feel the least-bad option is to keep the store supplied and hope it gets back on its feet, rather than lose a toehold for his product in that neighborhood.

That's a hypothetical, because I'm not sure that F&O is the only game in town for any of its suppliers. But at least a semi-rational case for the practice exists.

I think a situation like that existed with Tower Records. I'm sure that Tower owed the record labels considerable sums, but the prospect that Tower might go into oblivion was one that the record labels dearly wanted to avoid (Tower was such an important outlet for their wares--even today, CD unit sales are roughly equal to digital download album sales, incredibly enough) and so they carried Tower a good long while before the end, IIRC.

And the band plays on...

Channel 5 is reporting that Fox & Obel closed today.

I just walked by--the gates are up and the sign says 'Fox and Obel is Temporarily CLOSED'. The lights are on, and from the front window I see a few pieces of bread still in their baskets. Make of that what you may.

Edit on 9/24: By the way, I walked by the store today and it's still closed. However, I should note that there haven't been any reports in the media other than the one that stevez and my wife cited on NBC5 about a permanent closure. Definitely nothing in the Trib or Crain's as of this afternoon. So perhaps assuming their demise should be put on hold pending more information being available.

Sorry about the sideways pictures. I'm betting you took them with an iPhone. There is a known issue with iPhones not properly tagging vertical pictures. The solution...shoot landscape pictures of anything you are going to post directly to he board.

stevez wrote:Sorry about the sideways pictures. I'm betting you took them with an iPhone. There is a known issue with iPhones not properly tagging vertical pictures. The solution...shoot landscape pictures of anything you are going to post directly to he board.

I wanted to show confirmation they're at least temporarily closed. I'll swing by tomorrow AM and edit for landscape LOL

sdrucker wrote:

stevez wrote:Sorry about the sideways pictures. I'm betting you took them with an iPhone. There is a known issue with iPhones not properly tagging vertical pictures. The solution...shoot landscape pictures of anything you are going to post directly to he board.

I wanted to show confirmation they're at least temporarily closed. I'll swing by tomorrow AM and edit for landscape LOL

Thanks. Sorry about the inconvenience, but it's something that's out of our control at the present time.

Its official; they are gone.

http://www.chicagotribune.com/business/ ... 7499.story

DutchMuse wrote:Its official; they are gone.

http://www.chicagotribune.com/business/ ... 7499.story

And it's worse than we thought:
* They filed for bankruptcy because they got notice that ComEd was going to unplug them
* They're trying to get a court order to sell perishable goods before they lose their value, even looking into permission to hire temporary workers to move them

And the ultimate, from the Trib story:
"It then plans to sell its furniture, fixtures and equipment through a liquidator, then its customer and vendor lists, its 14-year-old sourdough bread starter, its website and name"

For those of us not savvy in bankruptcy law, how is this version of Chapter 11 different from 7 or 13?

Goodbye....and may something more stable and customer friendly move into that space in our Streeterville neighborhood. At this point, I'm not sure we really need another high end grocer given the relatively close proximity of Mariano's and Trader Joe's, and even (although some will laugh) the more traditional Treasure Island and the Dominck's, but if we get one, I'd kill for a Chicago location of Tsabar's or better yet, Kalystyan's. Even a Streeterville Garden Fresh wouldn't look so bad given their propensity to carry ethnic foods...pass the Achla hummus and Georgian spiced condiment...

Now this would be the ultimate: four kinds of picked labneh with spices alone. Just imagine...
http://kalustyans.com/

sdrucker wrote:For those of us not savvy in bankruptcy law, how is this version of Chapter 11 different from 7 or 13?

The primary difference between an 11 liquidation and a 7 liquidation is that in an 11, the debtor itself acts as the trustee. In a 7, a trustee is appointed (and it's not the debtor). Many debtors prefer the 11 route because it gives them more control over the liquidation process . . . insiders of a debtor may really prefer the 11 route, particularly where they are being accused of inappropriate transactions that an outside trustee may investigate and prosecute more aggressively.

BR wrote:

sdrucker wrote:For those of us not savvy in bankruptcy law, how is this version of Chapter 11 different from 7 or 13?

The primary difference between an 11 liquidation and a 7 liquidation is that in an 11, the debtor itself acts as the trustee. In a 7, a trustee is appointed (and it's not the debtor). Many debtors prefer the 11 route because it gives them more control over the liquidation process . . . insiders of a debtor may really prefer the 11 route, particularly where they are being accused of inappropriate transactions that an outside trustee may investigate and prosecute more aggressively.

Thanks - they must really be strapped for a chapter 11 to become a de facto liquidation, and given Bolton's current predicament with F&O investors, not surprising that this might be part of the reasoning for 11 instead of 7. At this point, does the status stay as a 11 regardless, or can the court order a chapter 7 liquidation given the situation?

sdrucker wrote:

BR wrote:

sdrucker wrote:For those of us not savvy in bankruptcy law, how is this version of Chapter 11 different from 7 or 13?

The primary difference between an 11 liquidation and a 7 liquidation is that in an 11, the debtor itself acts as the trustee. In a 7, a trustee is appointed (and it's not the debtor). Many debtors prefer the 11 route because it gives them more control over the liquidation process . . . insiders of a debtor may really prefer the 11 route, particularly where they are being accused of inappropriate transactions that an outside trustee may investigate and prosecute more aggressively.

Thanks - they must really be strapped for a chapter 11 to become a de facto liquidation, and given Bolton's current predicament with F&O investors, not surprising that this might be part of the reasoning for 11 instead of 7. At this point, does the status stay as a 11 regardless, or can the court order a chapter 7 liquidation given the situation?

There may be circumstances under which parties may petition the court to have the case converted, but it's really a wait and see at this point.

Let's make this a forum about legal interpretations!

The primary difference between Chapter 11 (or 13 for individuals) and Chapter 7 is between reorganization and liquidation. As the Chicago Tribune, GM and countless other companies show, one can can go through bankruptcy and stay in business. The essential nature of Chapter 11 is on one hand, providing time and on the other hand re-arrange aspects of the company. The key is that there has to be a viable plan for going forward, including, most likely, financing/capital. Thus, F&O could emerge.

Chapter 7 means everything is over. The trustee does what is possible to maximize the bankruptcy estate; secured creditors get their secured debt back, and the rest is divvied up pro rata. Creditors can team up and yes, petition for a liquidation.

I recently had a case where one of the companies I was researching went from 11 to 7 because they could not provide a reasonable reorganization plan.

Is there really any value in a 14 year old sourdough starter?
Does the fact that it may have had contract with fruit flies or roaches impact the price?

DML wrote:Is there really any value in a 14 year old sourdough starter?
Does the fact that it may have had contract with fruit flies or roaches impact the price?

Funny (seriously). I've had the same starter for probably eight years. I'm not at all convinced that age of the starter impacts the flavor. But if it does, I think the manipulations of the baker are far more important in determining the final taste.

Vital Information wrote:The primary difference between Chapter 11 (or 13 for individuals) and Chapter 7 is between reorganization and liquidation.

Not really. Well, this has historically been true, but in the past several years more and more companies are liquidating within the context of Chapter 11, for the reasons I explained above (and many others not necessarily worth going into here). In fact, I've seen a number of cases where even early on in the case, plans of liquidation have been filed. But there is absolutely nothing in Chapter 11 that prohibits liquidation. Now while it is true that a 7 is always a liquidation and an 11 could be a reorganization, this looks like your typical liquidating 11, which may or may not eventually be converted to a 7.

DML wrote:Is there really any value in a 14 year old sourdough starter?
Does the fact that it may have had contract with fruit flies or roaches impact the price?

BR wrote:

Vital Information wrote:The primary difference between Chapter 11 (or 13 for individuals) and Chapter 7 is between reorganization and liquidation.

Not really. Well, this has historically been true, but in the past several years more and more companies are liquidating within the context of Chapter 11, for the reasons I explained above (and many others not necessarily worth going into here). In fact, I've seen a number of cases where even early on in the case, plans of liquidation have been filed. But there is absolutely nothing in Chapter 11 that prohibits liquidation. Now while it is true that a 7 is always a liquidation and an 11 could be a reorganization, this looks like your typical liquidating 11, which may or may not eventually be converted to a 7.

One thing I saw in the Crain's story (behind their paywall) is that some pre-existing catering is moving forward with a 'skeleton staff' and an outside company providing the service. That may be part of a reorganization or just the scale-down.

Also, aside from the brand and website, is all the intellectual property being liquidated as well (i.e. the recipes from the bakery)?

DML wrote:Is there really any value in a 14 year old sourdough starter?
Does the fact that it may have had contract with fruit flies or roaches impact the price?

I don't know for sure, but I recently read a fairly entertaining murder mystery whose plot centered on the machinations of several people to get hold of a famed sourdough starter in San Francisco. In the book, the decades-old starter was supposedly key to successful bakeries. Offered FWIW!

The book, BTW, copyright something like 1994, was:

Sourdough Wars: A Cozy and Humorous San Francisco Mystery; Rebecca Schwartz #2 (The Rebecca Schwartz Series) by Julie Smith

sdbond wrote:

DML wrote:Is there really any value in a 14 year old sourdough starter?
Does the fact that it may have had contract with fruit flies or roaches impact the price?

I don't know for sure, but I recently read a fairly entertaining murder mystery whose plot centered on the machinations of several people to get hold of a famed sourdough starter in San Francisco. In the book, the decades-old starter was supposedly key to successful bakeries. Offered FWIW!

The book, BTW, copyright something like 1994, was:

Sourdough Wars: A Cozy and Humorous San Francisco Mystery; Rebecca Schwartz #2 (The Rebecca Schwartz Series) by Julie Smith

Maybe it's me, but I would find the recipe for their Old World bread, or their Irish Soda or Sicillian Sun bread, to be the most interesting LOL.

Falling action

=R=

Yikes...I've got gift cards I've been meaning to redeem. i believe it's up to the merchant if they honor any value. If they cannot pay their electric, they probably aren't too motivated to honor gift cards. I don't know if it's worth the trip from the burbs.

LMAO, this is classic. Zombie Fox & Obel, per the Trib's website . . .

Fox & Obel shut its doors earlier this month for the last time, but the Streeterville grocer's website is still taking orders, and collecting money, even though there's no one to fill them.

Fox & Obel closed, but website still taking orders

=R=

Spooky indeed!

Mrs. Green's, the New York-based organic grocery store that opened its first Chicago outlet Friday in Lincoln Park, has signed a deal to take over the vacant Fox & Obel store in Streeterville, which closed last month amid financial problems and failed health inspections.

http://www.chicagotribune.com/business/ ... 9592.story

^^ Sounds interesting, and an improvement organicwise over the mediocre selection F&O had. The article also spoke about acquiring existing retail stores and doing some subivision at times. Organic chef-driven restaurant anyone?

I never thought I'd say it, but we're going to miss that Dominick's on Columbus and Grand. Even if Jewel picks up the location, it won't be the same.

Minneapolis-based Target plans to open TargetExpress stores at the northeast corner of Ashland and Belmont avenues in Lakeview and in the former Fox & Obel grocery at the southeast corner of Illinois Street and McClurg Court in Streeterville, said people familiar with Target's plans.

http://www.chicagobusiness.com/realesta ... eeterville

Dave148 wrote:

Minneapolis-based Target plans to open TargetExpress stores at the northeast corner of Ashland and Belmont avenues in Lakeview and in the former Fox & Obel grocery at the southeast corner of Illinois Street and McClurg Court in Streeterville, said people familiar with Target's plans.

http://www.chicagobusiness.com/realesta ... eeterville

Interesting...heard the deal was dead--guess it's been revived! Noticed yesterday that demolition has already begun.
Edited to add that I was referring to the Belmont/Ashland location.

boudreaulicious wrote:

Dave148 wrote:

Minneapolis-based Target plans to open TargetExpress stores at the northeast corner of Ashland and Belmont avenues in Lakeview and in the former Fox & Obel grocery at the southeast corner of Illinois Street and McClurg Court in Streeterville, said people familiar with Target's plans.

http://www.chicagobusiness.com/realesta ... eeterville

Interesting...heard the deal was dead--guess it's been revived! Noticed yesterday that demolition has already begun.
Edited to add that I was referring to the Belmont/Ashland location.

Wow - they're kind of/sort of filling a void in Streeterville, which I think is somewhere between the new expanded Walgreens concept and maybe Bed Bath and Beyond or Marshall's as a bit of a reach. And not to be elitist, but the odd thing is that until Whole Foods opens up allegedly later this winter where the old Dominick's was on Grand, those of us that live here are in a bit of a food desert unless you're a fan of Treasure Island in the 680 LSD building, or like walking 10 minutes to Trader Joes or Jewel (or driving across the river to Mariano's in Lakeshore East). I don't miss F&O, which died several years after it's expiration date, but the loss of Dominick's has definitely had its toll.

sdrucker wrote:Wow - they're kind of/sort of filling a void in Streeterville, which I think is somewhere between the new expanded Walgreens concept and maybe Bed Bath and Beyond or Marshall's as a bit of a reach. And not to be elitist, but the odd thing is that until Whole Foods opens up allegedly later this winter where the old Dominick's was on Grand, those of us that live here are in a bit of a food desert unless you're a fan of Treasure Island in the 680 LSD building, or like walking 10 minutes to Trader Joes or Jewel (or driving across the river to Mariano's in Lakeshore East). I don't miss F&O, which died several years after it's expiration date, but the loss of Dominick's has definitely had its toll.

Potash Brothers, 875 N. State?

I go there a lot, FWIIMHOW.

Roger Ramjet wrote:
I go there a lot, FWIIMHOW.

Just for my own amusement, what does the abbreviation stand for? (Unless you made it up!)