Dean & DeLuca files for Chapter 11 bankruptcy protection By Lisa Fickenscher April 1, 2020 | 11:01am | Updated Enlarge Image Getty Images MORE ON: SUPERMARKETS Austria now requiring people to wear face masks in supermarkets How to handle groceries during coronavirus and other food safety tips What grocery stores are doing to protect workers during coronavirus outbreak Why Amazon didn't acquire NYC Fairway stores while scooping up 2 in NJ Dean & DeLuca, a pioneer fine-foods retailer in New York City for decades, has filed for Chapter 11 bankruptcy protection. The coronavirus pandemic pushed the 43-year-old grocer over the edge, according to court documents, but it hopes to sell its brand name — known for such luxury items as $165 tins of Siberian caviar — for $50 million. The company’s only source of income for the past six months has been royalty fees from a handful of franchised stores that paid the company $1.5 million in 2019, according to the filing. “It is unclear whether the debtors will continue to receive license payments in the near future due to the effect of the COVID-19 pandemic,” the filing states. Joel Dean and Giorgio DeLuca opened the first store in Manhattan’s Soho neighborhood in 1977. But in recent years, it changed hands several times — most recently bought in 2014 for $140 million by Thailand-based real estate company Pace Development — and the chain has struggled against lower-priced competitors. There were 42 stores worldwide when Pace bought the chain. By mid-2019, Dean & DeLuca had run out of cash and Pace was not able to offer additional loans to fund continuing losses. The company shuttered all of its owned retail outlets and closed off its e-commerce website. SEE ALSO Dean & DeLuca downsizes amid lawsuits from angry suppliers The company’s assets don’t come close to covering Dean & DeLuca’s massive debts. The company has accumulated $100 million in operating losses and owes $700,000 to vendors. The grocer owes approximately $275 million to its lenders, landlords, vendors and other creditors, according to the filing. Dean & DeLuca has one remaining employee — based in New York City, according to court https://nypost.com/2020/04/01/dean-deluca-nyc-grocer-files-for-bankruptcy/
They were so overpriced they did this to themselves.. even Whole Foods came down a bit after Amazon bought them. Only fancy pants with money to burn keep going to Dean and Deluca
Crazy a gyp joint like that wasn't rolling in money I never shop in such places Maybe folks are wising up 275 million to its lenders??? Looks like they raided the till to me. I say investigate
This happens when you sell a once successful business to an Asian conglomerate that has never operated in the sector of your business and when it is apparent that the purchase is just for bragging rights. This is happening again and again. Asian and Middle Eastern rich uncles who feel the need to buy some international bragging rights but spectacularly fail. Shows that nepotism, corruption, and a business model built on lies and bribery never translates into successful company management. The hotels that HNA group bought were all successfully run enterprises. The group had no fucking idea about hotel management, and for that sake no clue about pretty much anything else other than insider deals and corrupt behavior. The properties they once held and those they still hold have turned into shithole. Equally here, the Thai group bought D&D and the chain was probably handed to their inbred retarded children to try their luck on. D&D's store near Tokyo station in Marunoutchi district was the highest grossing store of the chain worldwide, I guess Japanese work ethics and professionalism made up for retarded ownership. I am ranting but I believe overall my point holds true: the life span of a business is severely shortened when it's being sold to someone who is not in the business of profitability and professionalism but in the business of nepotism, show-off mentality and unethical corporate dealings. I still have to come across more than 5 conglomerates in entire Asia (ex Japan, Korea, India) or the Middle East that truly grew through intelligent decision making and honest behavior, rather than favoritism, nepotism, corruption, unethical business networks, and constant cheating and getting away with it due to cosy relationships with government and regulators.