Fox & Obel Closing

By Chuck Sudo in Food on Sep 25, 2013 3:20PM

Embattled gourmet grocer Fox & Obel announced they’re closing permanently Wednesday morning, citing the debt the company owes, and is trying to get court approval to sell its fresh goods inventory before it spoils.

The Streeterville grocer made the announcement less than a week after filing for Chapter 11 bankruptcy protection, claiming $500,000-$1 million in assets against liabilities ranging between $1 million and $10 million. Fox & Obel received a notice last week their electricity would be shut off; they owe ComEd $35,000. The company plans to sell off all its assets, including its website and brand name.

Meanwhile, a group of investors filed a civil lawsuit against Bob Bolton, leader of the investment group that bought Fox & Obel in 2008, charging Bolton with diverting funds to himself while the grocer’s debts mounted. The investors claim they gave Bolton $375,000 to invest in Fox & Obel, but Bolton allegedly pocketed $200,000 for himself and that he hadn’t repaid that money. Bolton said in court documents he diverted the funds to the three Zapatista restaurants he owns (including the one in the South Loop) to cover operating expenses including rent, taxes, construction expenses, furniture and kitchen equipment.