NEW YORK • Dean & DeLuca, the pioneering gourmet grocer that shuttered its New York stores last year, has filed for bankruptcy in the United States.
The company's goal is to cut a restructuring deal with creditors and eventually reopen its stores, according to Chapter 11 papers filed late on Tuesday in the US Bankruptcy Court in Manhattan.
Dean & DeLuca ceased operations in New York in mid-2019 after running short of cash.
It listed liabilities of as much as US$500 million (S$717 million) and assets of no more than US$50 million in its bankruptcy petition.
The chain owes low-ranking creditors about US$275 million, including US$250 million to its owner, according to a declaration from chief restructuring officer Joseph Baum. It has just one remaining employee, according to court papers. The chain's owner, Thailand's Pace Development Corp, defaulted on a total of 9.5 billion baht (S$412 million) of debt last year.
Some franchise locations are continuing to operate.
The Straits Times understands that the Dean & DeLuca shop in Singapore is a franchised unit that is not affected by the bankruptcy filing. The store in Telok Ayer reduced its operating hours recently, reportedly due to lower footfall as a result of the coronavirus outbreak. The outlet at Orchard Central closed in June last year.
BLOOMBERG
• Additional reporting by Choo Yun Ting
