Dean & DeLuca Bankruptcy: Gourmet Grocer Files For Chapter 11, Plans To Re-Open Stores

Gourmet grocer Dean & DeLuca has filed for Chapter 11 bankruptcy protection after closing all of its New York stores in mid-2019.

Dean & DeLuca said in its bankruptcy filing that it is looking to revitalize the chain and hopes to re-open its stores by restructuring the company. The Chapter 11 filing comes after a failed attempt by the chain to restructure on its own, which was announced by its parent company Pace Development Corp. in July 2019.

In its bankruptcy filing with the U.S. Bankruptcy Court for the Southern District of New York, Dean & DeLuca listed liabilities of $500 million and assets of no more than $50 million. Debt owed to creditors amounted to about $275 million, with $250 million owed to the company’s owner, according to the filing.

Dean & DeLuca opened in New York more than four decades ago, offering international gourmet foods but eventually saw increased competition and slowed sales, which caused it to close up shops, Bloomberg reported.

According to the news outlet, Dean & DeLuca closed its New York stores after running short on cash, keeping some locations open. The company listed just one remaining employee in its court filing, with some franchise location continuing operations.