Struggling companies often use bankruptcy to jump-start a fresh chapter. It seems like a once-powerful gourmet giant Dean & Deluca is planning to do the same.
On March 31st the American chain filed for Chapter 11 bankruptcy, listing $100 – $500 million in estimated liabilities. After selling a good portion of assets Dean & Deluca will be prepared to go back to the game, reopening the gourmet shops that made them famous back in the 1970s.
Dean & Deluca’s ultimate undoing was Stage, their ambitious and luxurious Manhattan-based project. The restaurant under the same name, styled as a cafeteria that served sophisticated meals, was launched in 2019 but lived for just 3 months due to the low demand.
The rent bills and fees for Stage alone cost Dean & Deluca around $20 million. The whole chain eventually sunk into debt, failing to pay the staff and vendors and eventually shutting down the stores.