Choice Market’s shuttered location at 2200 E. Colfax Ave. is for sale. (Justin Wingerter/BusinessDen)
Choice Market, a local chain of small grocery stores, is planning a restructuring that could include Chapter 11 bankruptcy.
“We have a lot of faith that we will navigate through this period and come out the other side a stronger company with a lot of growth prospects,” said CEO Mike Fogarty.
Choice launched in 2017 and markets itself as a natural grocer combined with a fast-casual restaurant. It operates stores on Bannock in the Golden Triangle and along Broadway in Uptown, plus automated mini-marts, and plans to open at 3463 Walnut St. in RiNo.
Mike Fogarty
Stores at 2200 E. Colfax Ave. and 1737 E. Evans Ave. closed in the past year because they were losing money, according to the company’s CEO.
“We were having major issues with theft and vagrants” at the Colfax location, which closed a month ago, Fogarty said in an interview this week. “When we launched, we were doing quite well at that location. Slowly but surely, the conditions on Colfax have deteriorated.”
The Colfax property was recently listed for sale with a $3.6 million asking price. Choice and St. Charles Town Co., a Denver-based real estate firm, bought it in 2018 for $1.45 million. It had previously been home to a Chinese restaurant.
“We are evaluating a couple of different options, including an outright sale of the real estate and business, as well as rebranding or refreshing that location to be more of a conventional convenience store,” Fogarty said.
Choice Market said in a press release last year that it had raised nearly $10 million from investors.
Choice’s restructuring is necessary because an investor who signed a term sheet in January was unable to secure capital, according to Fogarty. The company’s Golden Triangle location was also denied a liquor license, costing that store an expected $500,000 per year in alcohol sales — “a pretty dramatic impact,” Fogarty said.
Choice Market’s former location at 1737 E. Evans Ave. (Thomas Gounley/BusinessDen)
The CEO noted that other small grocers are struggling too. Foxtrot and Dom’s Kitchen, which had 35 stores elsewhere in the country, closed them suddenly last week. Fogarty said a small grocery is “one of the single most difficult businesses to execute profitably.”
“Recently, it’s been difficult to keep stores stocked and we’ve definitely had some customer feedback. For that, we’re sorry. We’re doing our best to navigate a really difficult time in the capital markets,” the CEO said in this week’s interview, as he asked for patience.
“We appreciate customers sticking with us through this whole period,” Fogarty said, “and we hope to regain their trust in the coming weeks and months.”
If it files for bankruptcy, Choice will need to list two legal cases it is involved in. Its former Evans landlord is suing for $117,000 because Choice allegedly left its lease early and Offen Petroleum said it is owed $125,000 for gasoline it provided to the Colfax store.
“We are currently negotiating out of court,” Fogarty said.
Choice Market’s shuttered location at 2200 E. Colfax Ave. is for sale. (Justin Wingerter/BusinessDen)
Choice Market, a local chain of small grocery stores, is planning a restructuring that could include Chapter 11 bankruptcy.
“We have a lot of faith that we will navigate through this period and come out the other side a stronger company with a lot of growth prospects,” said CEO Mike Fogarty.
Choice launched in 2017 and markets itself as a natural grocer combined with a fast-casual restaurant. It operates stores on Bannock in the Golden Triangle and along Broadway in Uptown, plus automated mini-marts, and plans to open at 3463 Walnut St. in RiNo.
Mike Fogarty
Stores at 2200 E. Colfax Ave. and 1737 E. Evans Ave. closed in the past year because they were losing money, according to the company’s CEO.
“We were having major issues with theft and vagrants” at the Colfax location, which closed a month ago, Fogarty said in an interview this week. “When we launched, we were doing quite well at that location. Slowly but surely, the conditions on Colfax have deteriorated.”
The Colfax property was recently listed for sale with a $3.6 million asking price. Choice and St. Charles Town Co., a Denver-based real estate firm, bought it in 2018 for $1.45 million. It had previously been home to a Chinese restaurant.
“We are evaluating a couple of different options, including an outright sale of the real estate and business, as well as rebranding or refreshing that location to be more of a conventional convenience store,” Fogarty said.
Choice Market said in a press release last year that it had raised nearly $10 million from investors.
Choice’s restructuring is necessary because an investor who signed a term sheet in January was unable to secure capital, according to Fogarty. The company’s Golden Triangle location was also denied a liquor license, costing that store an expected $500,000 per year in alcohol sales — “a pretty dramatic impact,” Fogarty said.
Choice Market’s former location at 1737 E. Evans Ave. (Thomas Gounley/BusinessDen)
The CEO noted that other small grocers are struggling too. Foxtrot and Dom’s Kitchen, which had 35 stores elsewhere in the country, closed them suddenly last week. Fogarty said a small grocery is “one of the single most difficult businesses to execute profitably.”
“Recently, it’s been difficult to keep stores stocked and we’ve definitely had some customer feedback. For that, we’re sorry. We’re doing our best to navigate a really difficult time in the capital markets,” the CEO said in this week’s interview, as he asked for patience.
“We appreciate customers sticking with us through this whole period,” Fogarty said, “and we hope to regain their trust in the coming weeks and months.”
If it files for bankruptcy, Choice will need to list two legal cases it is involved in. Its former Evans landlord is suing for $117,000 because Choice allegedly left its lease early and Offen Petroleum said it is owed $125,000 for gasoline it provided to the Colfax store.
“We are currently negotiating out of court,” Fogarty said.
