Dean & DeLuca Closes Stores as Debts Pile Up

Jul 10, 2019 · 138 comments
Miss Cavendish (United States)
I had breakfast at D and D in the Paramount Hotel in 1995: croissant, espresso, and Martinelli apple juice. The juice, in its tiny apple-y glass bottle, was the kind of simple delicacy that made Dean and DeLuca special.
John (NYC)
Mr. Sorapoj is a poor businessman and he ruined one of New York's great shops.
Marjorie Summons (Greenpoint)
I often eat at the one in the NYTimes building. Whoops blew my cover. Anywho, it is very good. Fresh fish bowls. Was going to say platter with quinoa, sweet potatoes etc but that was at Pret a Manger.
Danny (Boston)
The article fails to mention the chairman of King Power was Vichai Raksriaksorn who died in a helicopter crash last year. He also owned the soccer team Leicester City which he improved greatly. Their company must make hundreds of investments a year. Not all of them will be successful. Leicester was, D&D is not. Simple as that. I was a customer of D&D for many years but had to stop shopping there when I accidentally bought at $20 yogurt... I failed to look at the receipt while running late for work.
RSinger (NYC)
The real shame belongs to Giorgio, who knew exactly what he was doing and what would happen when he sold the name. I remember contacting him in the early years of the progressive deterioration of quality. He knew and he clearly didn’t care.
Joe Bruno
In the 70's and 80's in NYC it was special, maybe even took up the slack left by the waning of Balducci's on 6th. But now? Who cares? It's failure is just the crash of empty egos. As regards the "poor, unfortunate, and disadvantaged vendors," I don't feel so sorry. As a chef I've seen time and again that no sooner does a purveyor land an account like Dean & DeLuca than the rest of its customer base ceases to matter. Suddenly relationships that were built over years of steady and trusted business are trashed. The purveyor, now in the limeshadow (not quite the limelight) of its new big client, ceases to care for the folks who helped it grow its business. In many cases they deserve what they get when the big guy fails leaving them holding the bag.
R (New York)
I'm puzzled by this attitude toward vendors, which include both food service and consumer packaged goods companies. Dean and Deluca was certainly a prestige account for many small specialty food manufacturers and importers, but in almost no cases was it a high volume account that would have caused them to provide lesser service to existing customers. They have used threats of removing brands from shelf to stretch what should have been net-30 or 45 terms over multiple years while racking up additional debt. When a business that only makes a few million dollars per year while trying to fund growth ends up with many thousands of dollars tied up in unrecovered payments, real damage is being done.
Frank (Colorado)
As we should have learned by now from Trump, rich guys don't have to pay their bills.
B Doll (NYC)
D&D in Soho is a looted warehouse. Unless you're feeling masochistic, there's no reason to go. The food is ordinary. The employees are sad or angry waiting for the other foot to fall. That said, money owed these small excellent bakers and purveyors is somewhere, for sure. Whoever this Thai mogul is (nice work, Giorgio) it's unlikely he'll deny himself one morsel of the roasted rump of the rare Norwegian peacock in order to pay his debts (50 cent on a dollar...you kidding?). From lavish to vanquish is an ancient Biblical ride, ugly as ever.
Tom (Bluffton SC)
I never could figure out how a store in Rockefeller Center paid the rent selling croissants and balsamic vinegar to tourists. Guess it couldn't.
Richard Frank (Western Mass)
Does Mr. Techakraisri own any casinos? Just curious.
Guido Malsh (Cincinnati)
"As long as you don't damage the brand." Wonder what would happen if they simply added, '& Trump' to the name. More's the pity, not for the customers as much as for the poorer vendors.
R. Finney (NY)
I went to buy a cup of drip coffee in a Dean and Deluca a few weeks ago. I am lactose intolerant, and wanted a non-dairy creamer like almond or soy milk. They wanted to charge me an extra 75 cents! (On top of their already-overpriced coffee) Good riddance to these greedy business owners. Not even Starbucks charges extra for non-dairy creamers. Lactose intolerance is a medical condition which might be covered under the Americans with Disabilities Act. This upcharge might even be against the law. Shame on them.
Lynn (North Carolina)
We miss the stores here in Charlotte. Such a shame to see them ruined.
Pb (Chicago)
Overpriced and overrated- high time people realized what a ripoff it was.
Patricia Caiozzo (Port Washington, New York)
Pace Development must have taken a page out of Trump’s business playbook. Spend millions, make poor business decisions, lose millions and then stiff everyone to whom you owe money. The employees and those who are owed money are the losers here. It’s just another day for Pace Development who will come away from their D &D business debacle unscathed.
DesertFlowerLV (Las Vegas, NV)
Grocery stores with lots of empty spaces on the shelves are going out of business. Do not believe what the owner of D&D is saying. If you're an employee, it's time to bail.
Ted UWS (New York City)
At first I was shocked at the title of the article, wondering how could our beloved D&D be closing down. But then as soon as I saw that it was sold to a "Thai magnate" I could see right away what went wrong. When original creative owners of a business sell out to someone living halfway across the world, then the only purpose of that transaction is so somebody far away can extract as much money as possible from our city. No surprise really this has happened: many beloved local New York businesses have closed down because the owners can't pay the stupidly high rents. And the residents get left with either a blank plate glass window, or some re-cycled version of the business, commercialized, stripped down to a mono-choice of goods, until you know you're living in a theme park that used to be called New York City. Other business owners do us a favor: if you can choose between closing down or selling, don't sell. We don't need "Thai magnates" running Dylan's Candy or EJs Luncheonette,
Francisco (Spain)
@Ted UWS I totally agree. But I feel like Mr Dean and Mr DeLuca sold their souls to the Devil and they knew it. Greed and stupidity together. It's a shame how our society leads us to plastic soullessness (if I can say that). Everything should keep its original spirit. Thai milionaires playing Trump... what could get wrong?
Marjorie Summons (Greenpoint)
D and D going down the tube as Moma Design store advertisements look like Dollar General. What have Ye Wrought M'Lord?
Umi (New York)
About 25 or more years ago, I’d treat myself to the most delicious fresh food in New York. The guys would let me park in their loading dock so I wouldn’t get a ticket. It didn’t matter what things cost because every bite of everything was to be savored. Everybody who worked there was friendly. I’d buy some delicious grilled vegetables, impossibly sweet raspberries, the freshest of everything. Have a cappuccino...the guys would open up the door to the loading dock and I’d be off... Fast forward to now. D&D opened up on Madison and 85th replacing a disgusting Gristedes. The new D&D smelled just as dirty and dank as the supermarket it replaced. The prices were insultingly high and the staff were equally insulting and rude. Even if all you wanted was a cup of soup, a deliberate antagonism was palpable behind every sale. The cheese counter...withholding....the cooked food? The service people wouldn’t answer even if you politely asked a question. The greatest fruit on earth? Gone. The delicious baked goods...became so mundane over time it was just cheaper to get the same at down-market Hit and Crusty. The arrogance...a theme from day one...remained the cornerstone of this branch as the place got filthier and the quality of the food far, far worse. Glad to see it go. Always amazed at how it tricked the “carriage trade” on the UES. But then I realized, if you overprice something people think it’s worth having. Until it’s not.
Shyamela (New York)
I went there recently to eat their wonderful Pain du Matin, only to be told it hadn't been part of their repertoire for months. So sad. I will always remember them for that delicious treat.
KMW (New York City)
I would go there for their delicious apple sauce carrot cake and pastries. There was the wonderful pecan sweet rolls that they stopped selling and I now wonder if it was because they did not pay the vendor. They also no longer sold their scrumptious Christmas cookies which was a terrible disappointment. They were as close to home baked as one could find. Their prices were quite high for prepared foods, cheeses and sandwiches so I passed those up. I think I will head down to Soho to see if I can find their cake which I love so much. I want to buy it before the store closes for good. I will miss the friendly and lovely staff and those delicious goodies. This is such a pity for all involved especially the wonderful staff. I will miss this store so much.
ACRA (NYC)
I am not at all surprised by this report. I moved to SOHO while in college in the 1970's and D&D was a small go to shop for great sandwiches and soups. When they expanded and opened the Broadway store I was delighted, they had every epicurean delight. I never hesitated to spend the extra money they asked for a rich array of charcuterie and fresh produce and prepared foods. I would go there daily to stock up on items I couldn't get anywhere else. But in the last few years the produce is awful, wilted greens and fruit that is turning, scarce are the smoked salmon varieties I loved. largely the store has become a large barn filled with tourists and a lunch crowd seeking sushi, soups and prepared food. I go less and less these days but when I do I can't help but comment to the staff what a shadow of its former self Dean and Deluca really has become.
Tuvw Xyz (Evanston, Illinois)
@ACRA NYC A sad end to a pleasant memory. But this case is not only a plight of New York: in Chicago, there used to be an excellent gourmet delicatessen store, Fox & Obel, of which nothing but memory remains. Sic transit gulae gloria ... (From Internet translator, "glory of gastronomy").
Khun Nepotism (Bangkok)
The original plan was to do the IPO that the original owners never managed to complete, the new owner is rumored to have only put up US$5 million ... whilst the Bangkok bank loaned him the other US$125 million - the only driving force was the IPO and possible big pay day ... The vanity property in Bangkok was sold off in April to a duty free shopping company in a very urgent sale ... many say at a huge loss ... A few stores in Asia make a profit most don’t seem to be doing well - style over substance & enormous egos - very sad No doubt the full facts will out in due course, although typically not here in Asia - Pace & Face ...
Jean (Holland, Ohio)
My favorite store in USA. Especially the one in the Village.
Brenda Becker (Brooklyn)
I went into the flagship Soho store this afternoon, almost no stock on the shelves. Ask several employees what was going on, and all said they had been told that the store was "remodelling." Hmm.
Marjorie Summons (Greenpoint)
@Brenda Becker. I remodeled for a while. Shut down completely.
DaisyMae (New York)
@Brenda...ditto. I went into the Soho store this morning looking for Fiji water and it was rows and rows of empty shelves.. many signs saying remodeling in progress. I’m shocked the UES store closed. I used to go there quite often and there were always lines. Another great New York institution mismanaged into the history books...
Carolyn (Amsterdam)
I used to buy delicious sandwiches at the hole in the wall that was their first shop. (Giorgio always complimented my outfits.) Later on at the Prince Street shop Giorgio and Joel would have all the time in the world to answer your questions about food---they educated a lot of people! First time I ever saw sun-dried tomatoes was at the Prince Street shop, and they carried really tasty ones. First time I ever tasted vacherin, coming in from France in the fall; chanterelles and squash blossoms...the place was a revelation. Thank you! but you never should have sold out.
Adam (New York City)
@Carolyn Me too! I lived at 112 Greene Street when half the floors of the building were still industrial, and remember those fabulous sandwiches to this day. I remember Giorgio saying to me, "Try this..." Their little shops stocked with an immense aesthetic transformed my notions about food and anchored a neighborhood.
Tuvw Xyz (Evanston, Illinois)
@ Carolyn Amsterdam Not being a New Yorker, I can only admire your warm memories of D&D, and some similarity of your and my tastes. Although soft cheeses are fairly low on my scale of liking (except for Saint André), I would kill for fresh meaty chanterelles that one rarely fonds in stores where I live.
Brooklyn Cookie (Brooklyn, NY)
Who are we sad for here? The original owners made out like bandits. I'm sad for the employees, especially those in the SoHo store. D&D, like Kate's Paperie, was always so aspirational for me when I moved to NYC 30+ years ago. When I had a little extra money, I would shop at both. D&D was mesmerizing. By the time I was flush enough to afford a full basket of groceries, around the time Gourmet Garage opened, it had already started to lose its luster. No doubt the Soho location will become another bank or expensive gym.
GCT (LA)
The original D&D was not the bright airy space on Prince St, but rather a tiny dark store across the street. Have very fond memories of the store, and original owners who were always there. I no longer live in NYC, but was very confused when I saw D&D sponsoring a PGA golf tournament in Dallas.
Jim Cricket (Right here)
I've never really understood when a larger company, let alone an investment company, buys into a much smaller company, let alone a company having so very specific an identity. I understand that they are betting on the public accepting the definition of the identity of a business remaining, but the people who built that identity, and in most respects ARE that identity, are gone once the new people have arrived. Mr. DeLuca is rooting for them, but what Mr. DeLuca is not giving them is himself. So what's really left other than a name?
Ian MacFarlane (Philadelphia)
I was in business serving retail coffe shops with fresh roasted coffee and was stiffed by two accounts for over $25K, because I foolishly trusted them to pay their past due bills. C.O.D. is the only way to keep things straight for both sides of any business transaction involving an exchange of goods for money. Friendship and trust in business transactions is a common mistake that has filled the bank accounts of more than one attorney.
Michael Cooke (Bangkok)
The tower in Bangkok gave clues of financial distress years ago. While the project was trolling for ultra wealthy buyers, the developers were neglecting touches that are essential for marketing to that segment in this corner of the world. It's surprising that they'd let troubles in the real estate part of their business bleed into what should be a thriving retail unit. Generally, the death rattle of any retail business is when word gets out that it is stiffing creditors. The vendors that do continue to do business with Dean and DeLuca will demand cash in advance. Which vulture firm will scoop up the brand equity before it is drained away by cola drinks?
eleanor (santa monica, ca)
As a 75 year old native New Yorker who still desperately misses the city, I had told my husband that when the time came, I wanted some of my ashes to be scattered (discreetly) at D & D. Unless I keel over very soon indeed, I guess that's a no go. Even in death, you can't go home again.
Shoshin. Seishu (Washington, D.C.)
@eleanor So sad...but apparently true.
John (Rhode Island)
Not very good. I went a couple of times in Manhattan and it just was not worth the price. Good works. Bad fails.
Lorraine Fina Stevenski (Florida)
The big fish eats the smaller fish and so on. Soon we will be eating artificial meat, fish and vegetables. So my love of great food and ingredients will be gone anyway. We have sold out to science. And the rest of the world owning our American icons.
Real Food (Long Island, NY)
@Lorraine Fina Stevenski Oh God!! I totally agree with you. Most people are clueless about what is happening to our food.
Guy Walker (New York City)
Copied to such a degree (and Macy's Basement), every U.S. city developed that cookie-cutter formula flav for every food court in every foot mall and public atrium in such frequency that it boomeranged back at Manhattan making what was once unique to New York City seem mediocre. There are kitchen boutiques around that have found their niche, but it all started with the Gourmet readers pioneering in a wilderness that paved the way for the kitchen to become the meeting place of appreciation for good food.
Anonymot (CT)
A classic story of a great, specialized, and unique business gone corporate. In 2008/9 I was put out of business as the banks squeezed my clients to death who, in turn, didn't pay my small company to save theirs. Some of them survived, most were bought out big larger cash & credit rich companies and I ended up broke. Thank you banks and bankruptcy. The Dean & Delucca in the Village was an Italian wonderland for a long time.
Rich Murphy (Palm City)
Not paying your vendors is considered good business and Trump didn’t invent it. As Jill Lepore said in her history of America, bankruptcy laws are what has made America great. The ability to stiff your creditors and start over.
Wordsworth from Wadsworth (Mesa, Arizona)
Things change in retail, especially when the operation is run by a Thai conglomerate, all of things. But in this day and age, a family business can change overnight. In my hometown of Akron, there was a family-run store called "The West Point Market." Long before the foodie era, it was called the best supermarket between New York and Chicago by the Times and the "Wall Street Journal." It's no more. Whole Foods offered them millions for their real estate, and that was that. The West Point Market was finito. They had truly prime steaks and the widest cheese selection I ever saw. They had celery root when I didn't know know what it was. They had bizarre Swedish crackers like little toasts. They had a dozen European mustards in crocks and tubes. They had a customized oven for French bread, and sold "Killer Brownies" by mail order. They had savory and sweet homemade cheese spreads that assuaged the ascetic process of law school. They tried a smaller specialty store, and it went bust. No more West Point Market after 82 years. Like the rest of the Tire & Rubber Capital, it's just a very fond memory. We are living in postindustrial times. And the gray skies of Ohio are not as nearly as convivial.
Dileep Gangolli (Chicago, IL)
@Wordsworth from Wadsworth We run a small specialty grocery store in Chicago (www.greengrocerchicago.biz) and we have struggled since owning the store for just over a year. Competition is rough (esp with AMZN buying WFDS) and young people are not cooking as much as they spend their money going out to eat. Throw in a $13/minimum wage (which is necessary here in Chicago due to the high cost of living), rent, and inflation hitting our supply chain, you have a perfect storm for a small business like the store you mentioned. If the underlying property is owned by the store owner, a logical exit strategy is to sell the property and retire. We are in the process of transforming our grocery store into more of a wine shop which will help us to survive for many reasons. Fingers crossed!
middle american (ohio)
although you are right about their cheese selection, having moved to Akron in the last few years my impression of them was overpriced, low stock in produce and fresh meats, and a lot of old specialty items on the shelves. it's just a question of tastes changing faster than older businesses can accommodate.
trixila (illinois)
Please don't follow the path of Fox & Obel.
Bernice (New York)
Many of us grew up aspiring to taste or know what Dean & Deluca's carried on their shelves- mainly to be more worldly, sophisticated and gourmet for one small moment. While I now cook a lot and am familiar with delicacies from all over the world, there still is a certain flush when walking in the store to wonder if I might see a new product that I don't know of or have never tried. Only a few years ago, they introduced me to delicate matcha cookies from Japan that I bought for friends for the holidays. I loved going in during the winter before holidays and seeing mounds of panettone and the overflowing pastry bar. Yes, most of the products are now easily purchased elsewhere, including dreaded Amazon. Those are transactions and Whole Foods is no haven anymore, either, by the way! I stopped in D&D Soho this week and felt a sense of forlornness (half the fridge racks were broken and therefore empty and in disrepair). I will still miss shops- like this- that were part of my 'upbringing' in NYC and that helped me discover a bigger world than I would have otherwise known.
Margaret Fraser (Woodstock, Vermont)
I am sad to see such an ignoble end to a once visionary food store.I think these things happen when businesses are owned by people who do not care about the products they sell but only about their net profit. I still miss B. Altman's!!! Quality will always suffer when owners care about nothing but their bottom line. Provenance disappears when only the label, the brand has status and not what it is supposed to represent like knowledge, craftsmanship, respect for suppliers, workers and customers alike.
L (NYC)
@Margaret Fraser: You are so right and, FWIW, MANY of us still miss B. Altman's!
judy (In the sunshine)
@L I miss Altman's, Bonwit Teller and even Woolworth's! I miss the nice quality of clothing that used to be available in Lord & Taylor - nevermind the idea that wearing good quality clothing was something to be desired. The world changes, we have to change with it.
Margaret Fraser (Woodstock, Vermont)
Me too!
Andy Deckman (Manhattan)
Consumer taste is a cruel mistress. While not addressed by the author, the brand and the concept do not resonate with the masses. Walk into any Zabar's and count the heads of gray. Anyone taking bets?
mcguire (massachusetts)
It sounds as though the successive owners of D&D picked up their approach to business ethics (i.e., paying one's vendors) from the President of the United States. What could possibly be wrong with that?
Wendy Dawson (Connecticut)
Whole Foods will be next.
jill0 (chicago)
@Wendy Dawson You can't deny that Whole Foods has gone noticeably downhill after the Amazon purchase. The deli counter is stingy, a lot of stuff doesn't look good. Just not worth it to make the trek and be disappointed. I haven't gone to WF in months--it's a turn off.
MK (South village)
All these petty clueless little zillionaires, stiffing small and medium providers with nary a thought. Seize their business, and make them pay.
albert (virginia)
Whole Foods provides much of what was exclusive to D and D. Times change.
starfish (san francisco)
Isn't Fairway in trouble as well - from expanding. It's so sad. Consumer choice has narrowed so much in the last 20 years. Not a real problem I suppose...the ultimate 1st world problem in fact.
John (NYC)
@starfish I hope not! Fairway is a great supermarket.
Tuvw Xyz (Evanston, Illinois)
Oh, well, the wheel of history turns and the gastronomic glory of some passes away.
L (NYC)
Is anyone surprised that this is what happens when a real-estate "investor" from THAILAND takes over what used to be a quintessential NYC store featuring ITALIAN foods? And really, in NYC, do we not know that real estate bigwigs are not to be trusted? That they'll order your best product in large quantities, then stiff you and say "sue me!" and force you to settle for pennies on the dollar? I think we're familiar with this modus operandi. The guy sounds like the Trump of Thailand - equally untrustworthy & corrupt. He can't pay for croissants and cookies? I think the correct phrases are "WON'T pay for" and "is playing his suppliers for fools."
Rich Murphy (Palm City)
I think that you will find that most supermarkets are owned by foreigners.
HeywoodFloyd (NYC)
Same architect for the Stage interior and the tower in Thailand, makes me wonder about the real sequence of events...
Kyle C (Washington DC)
Wait, there are only 9 Dean & DeLuca stores? Wow do I live in a bubble. This reminds me of the days when there were only about 4 Urban Outfitters in America, and I had lived near all of them.
Brendan Hasenstab (Brooklyn, NY)
What you have here is a sad example of what happens when private equity-style investors buy into a business that they don’t really understand. But, as others have noted, the real D&D experience ended years ago. So, I suppose I have to hug my copy of the Dean and Deluca Cookbook and make those lost dishes from scratch.
Tuvw Xyz (Evanston, Illinois)
@ Brendan Hasenstab Brooklyn, NY Applause! You may even consider to have your D&D Cookbook bound in gold-tooled leather, to assure that the gastronomic glory does not pass away.
Allison C. (New York)
I aspired to shop at the Soho location in the early aughts and successfully made this a reality for a weekly trip from 2010-2016. Something then happened. They stopped carrying hard to source items, customer service offered little explanation, then the store became more of a grab and go lunch outlet and no longer a proper shop. I'm sad to see it go and that the original spirit of the store seems long gone.
Easy Goer (Louisiana)
Regardless of who did what, it is a sad day to hear Dean and Deluca is closing. I remember going to the store (I was living in Soiho) in their heyday. It was such a great store store, even if you didn't have a lot of money, you could buy (or ship) a small amount of specialty items, like ltheir wonderful types of ravioli. Anyway, I also know what it's like to be on the other side of the fence. As a small business owner in Manhattan for almost 3 decades, companies behaving as the man who owns it now is kills so many equally unique, niche-type small businesses, such as I had. I went from the "penthouse to the outhouse" as trhe southern expression goes; all because of corporations (or people) such as this. Such is life. After succeeding more than I ever could have ever hoped for (including many great years), ultimately, I ended up with far less than zero. I would stiill do it all over again, for it is the experience which is what made it fun. I liken it to the quote about love: "It is better to have loved and lost, than to never have loved at all." In our small business (we started with almost nothing), "It is better to have succeeded and lost it, than to never have succeeded at all." Again, I would do it all over again.
Marge Keller (Midwest)
I will never understand why whatever handsome profits were made and enjoyed by a few choice Dean and DeLuca locations wasn't enough. SO many wonderful, unique and enticing shops seem to be going belly up because they have expanded too much, too soon and began substituting second rate merchandise and food items throughout the stores. The need for greed coupled with the desire for bigger profits begins to undermine and destroy something that was once wonderful, attractive, and enjoyable. Why isn't operating a handful of establishments well like a fined tune kitchen is enough?
Patrick (NYC)
@Marge Keller I bet all of those other locations owe their hundreds of small business suppliers and contractors mucho dinero as well. And then there’s the folks who bought overpriced condo units because D&D had a commercial space presence. And now they are all closing up. What a surprise. But wait, don’t cut off deliveries and services yet, there is going to be a major cash infusion very soon by corporate HQ. We promise, the check will be in the mail.
L (NYC)
@Honeybee: I can and DO blame them!
Michael Spendolini (Laguna Beach CA)
I agree I’m from Southern California and during the mid to late 90s I traveled to both NYC and Washington/Georgetown for business. One of my treats during my free days or early evenings was to visit the D&D locations and stock up on the spice tins (which i still have and refill with Penzeys..... sorry about that Penzeys), purchase D&D famous white coffee cups, and purchase some Italian pastries and pastas to take home. There were only a few stores open back then and it was always a treat to eat and shop there. The quality and array of products and the young knowledgeable staff always made the visits worthwhile. Growth and change of ownership has often been associated with the demise of once - unique and special culinary/retail. I have no idea whether the business I enjoyed patronizing in the 90s was profitable or not, and I certainly was unaware of the owners original intentions regarding expansion. But still will have great memories of that special place and how it was, at the time, a destination for visitors seeking a quality culinary experience. Still enjoy my D&D coffee cups (the ones that taper slightly at the top), the 40 spice tins, and the D&D cookbook still in use.
Froon (NY State)
Generational change is happening with small shops all over the city. Sometime it works, sometime not.
JW (NYC)
Whenever I happen to walk by STAGE it's empty.
joel bergsman (st leonard md)
Let's all pray for Zabars.
Marjorie Summons (Greenpoint)
"Hi, I'm calling about your bill for $75,000 worth of croissants. Yes, you can pay it next week? You want us to send you another $5,000 of croissants right now? Sure, no problem. Thanks!"
Marjorie Summons (Greenpoint)
Taleggio, French Press, olives from Nice, Amaretti, pain au chocolat, chocolate covered coffee beans....
Joe (NYC)
I'm sure Techakraisri still flies around in his private jet and is lauded as a successful businessman. Meanwhile, small companies get stiffed. Dean & Deluca is well past its prime. Sad to see it go.
Snarky (Maryland)
Mounting losses, no path to profitability; kinda sounds like a unicorn... Maybe they can go public and take advantage of the bigger fool theory
Howard Beale (La LA, Looney Tunes)
Trump's business model
Eric B. (Pasadena, CA)
Isn’t it time for @MarjorieSummons to chime in her views on the Federal Reserve, or some non-sequitur?
Caryl baron (NYC)
When I was taking jewelery classes in the late 1970s, Dean & DeLuca had a tiny cheese shop on street level below my class. They loved their cheeses, their food, their spices, and traveled each year to expand their knowledge. It was good to see their enterprise grow, though it became too expensive, too crowded, too chic, not much fun anymore. It’s not surprising that 40 years later they sold the business, but sad to see it end this way.
Carrie Beth (NYC)
My husband and I came to live in Soho at the same time as Dean and DeLuca. We were renovating a loft on Broadway between Prince and Houston. At lunchtime, one of us would go to Prince Street to pick up lunch and sometimes dinner at a small take-out store. It was only when they move into a much larger space across the street that we discovered their name was Dean and DeLuca. It was our daily home cooked meal away from home for months until we finally had a kitchen of our own. In addition, for years, in order to have all fresh produce the next day, each night, an hour before closing, Dean and DeLuca (unadvertised) would sell all remaining produce at 50%. Needless to say, local artists ate much better than expected. This practice came to an end shortly after Dean and DeLuca moved to Broadway. The prices started to climb and our sense of belonging ended. A sad decline and ending for a once creative and exciting place.
alocksley (NYC)
almost everything one can buy at D&D can be bought elsewhere for less now. One pays extra only for the "atmosphere" of the place, which on a winter saturday, could choke you. While it was an attraction when it began, it, like so many other bygone places, has been passed by.
Allecram (New York, NY)
I remember walking along the creaking wood floors when it opened on a Soho side street, thrilled to see such delicious food--we couldn't afford much, but when we did buy something, it was a real treat and an education. As NYC expanded and the food scene improved, D&D seemed to fade into the background--I did stop at the one near Port Authority recently and found the food surprisingly subpar, didn't go back. And the last time I was in the Soho outpost, I noted that the same Srihacha sauce would cost a fraction a few blocks away in Chinatown. Anyway, sounds like the times have been hard on D&D and now its carcass has been picked by the real-estate developers (who increasingly seem to run the world, albeit badly).
L. Clements (NY, NY)
Corporations are our friends. They really are.
Howard Beale (La LA, Looney Tunes)
Sure are... they are people too... just like the citizens united SCOTUS decision allowed. Notably one of their WORST ever decisions... led entirely by (partisan) republican appointees and the republican backed legal team.
Stan G (New York)
Pace is in over its head. They are real estate developers and know nothing about food or the American high-end market. Another company bought up by foreign interests and then.... disaster. Remember B Altman's?
Hilary (Nyc)
Stage is a joke. I work in the neighborhood and it isn’t working. 5 too-fancy sandwiches on menu, not enough customizable options, wasteful non-recyclable packaging for what could easily be placed in a wax paper bag, 1 size of drip coffee, no neighborhood loyalty program like most other coffee shops in the hood offer. Ultimately it is too precious. My coworkers and I were excited to hear dean&deluca was opening , thinking it would be like the others: a grocery store with $$ prepared foods, where we could pick up strawberries in the morning, sushi for lunch, and garlic needed in your dinner recipe. Stage is undeservingly treated as too “precious”. Bring back old school dean&deluca.
SLCmama (Los Angeles)
Poor Dean & DeLuca, bought by the Donald Trump of Thailand...and now, surprise, the brand is tarnished and they are not paying vendors. Can he run for President of Thailand?
CJ DiGaudio (New York City)
@SLCmama You hit the nail on the head. And who gets hurt all the small quality purveyors who have been supplying these stores for years. JUST LIKE TRUMP
Marjorie Summons (Greenpoint)
I went there first in 1982. We used to go to Food cafe down the street. Huge pieces of cake I remember. I thought that particularly American, huge portions. Went to Rocks in Your Head music store downstairs on Prince. Dean and Deluca taught us to eat. Coffee, croissants, cheese, salami, pasta, Italian was almost the only cuisine people fixated on. French was passé. Martinis, Mimosas, burgers at the Odeon. Cafe society. agnés b. Donald Sacks.
Tony (Bangkok)
I read this story with great interest. My first D&D was the Soho branch back in the 1990s I think. Going there was "a thing", a real destination place. When I first got to Bangkok in 2014 I was surprised to find a D&D here and someone told me they were owned by a Thai company. That was pretty mind-blowing. Who would've thought that would happen? Certainly not me, but that's the way of the world now. There is a D&D cafe in the lobby of the office building where I work (shown in the photo showing the Mahanakhon skyscraper), and they're planning to expand their offerings and seating area soon. While I like their coffee and lunch offerings, they are on the expensive side, especially for my Thai colleagues who consider it a pay day splurge to go there. Does it compare with the D&D I first visited in Soho? Of course not, but quality and service standards are still pretty high IMO. I hope they pay their bills and bounce back.
Dale (NYC)
Used to go every day at lunch for their cucumber salad with dill and white onions. It was something you could easily make for a fraction of the price at home but their version had an alchemy that was somehow 10x better. The coffee bar in the mornings (while working at Scholastic at 557 Broadway) had a delightful hazelnut coffee that made Starbucks seem like hot water with crayon, it was so much better. It was worth paying $1600 per month for a studio because Manhattan had so many amenities: Pink Floyd laser shows at the Hayden Planetarium, midnight plantains and black beans at The Coffee Shop on the west side of Union Square, the "vegetable don" with carrot dressing at Dojo on West Fourth, the magazine racks at Tower Records, "De La Guarda" at the Daryl Roth Theater for when people came to visit the city. . . How many of these places are still around? None. And now D&D is on its way out as well? What will be left at street level but invasive retail banks (with their $3 ATM fees) and bleak "For Commercial Lease" signs posted on all the storefronts that used to give each neighborhood its unique personality, and decent coffee.
Michael Spendolini (Laguna Beach CA)
Agree Used to Visit the SoHo and Georgetown locations in the 90s when on business trips. It was a destination place and worth the prices given the way the place made me feel. Still have 40 spice tins (refill with Penzeys....sorry about that), a half dozen of the famous white tapered coffee cups, and the D&D cookbook on the shelf. It was great in its prime.
Bocheball (New York City)
I remember going there often, but could hardly afford anything. I'd get a roll or 1/4 pound of something from their deli, then go get a slice of pizza to fill up. It was always a store for the rich. No great loss.
Jay Kardon (Pittsburgh)
The original store was not "an airy shop". It was cramped and narrow. The labels on the spice jars were handwritten (by my first BF). Georgio was very exacting about them. I never knew whether the staff was being affectionate or sarcastic when referring to "Papa" Dean. The magic died when they moved to Broadway.
Sloane (New York)
@Jay Kardon I lived on Greene St between Prince and Spring back in the ‘80s. I stopped in that wonderful cozy place not just for the unique and unusual but for the basic quart of milk and a dozen eggs. Giorgio and Joel were always available for a quick hello or a bit of conversation. My memories of Soho when it was still a place that was for artists and the adventurous of spirit are inextricably bound to that lovely local market. You’re quite right. It never should have been “Broadwayed”. It lost its special charm
McMartin (NYC)
I moved to NYC from the Midwest to go to culinary school here. D&D, Balducci's and Bridge Kitchenware were my holiest of holy places cookingwise. (Grace's was added later once I moved uptown.) The thrill to go into these establishments back in the early 90's was at times overwhelming - the available produce that was unseen in the Midwest at the time, oooh my! And the prices - THE PRICES(!). Ha! Well worth eating canned tuna for the rest of the week, just for that. one. meal. So sad to see yet another go.
Patrick (NYC)
All that debt to myriad suppliers sounds like they are being ‘busted out’. I suppose if a big stack of blue beach coolers appears on the sidewalk out front with a sign for $2 a piece, that would be a sure sign.
Jon (NJ)
@Patrick blue sells better than red
Reb (NYC)
Not only did Dean & Deluca not pay their vendors, but now they are not paying their UPS bills. UPS is now asking the vendor to pay the bill.
RBC (BROOKLYN)
As a fan of Dean & Deluca, I will tell you what's wrong: 1. The younger generation just aren't foodies. 2. Competition in the "grab & go" food market has increased substantially in past few years. 3. Retail rents & minimum wage increases 4. Outside of the SoHo flagship, no one knows where another D&D is located. They have no retail presence.
B (Southeast)
@RBC For those of us who live outside NYC, I would add one more thing: the growth in luxury offerings by chain supermarkets. I haven't been to NYC in nearly 10 years, but I remember seeing a lot of lousy, small, dusty groceries near my hotels in Manhattan. Out here in the hinterlands, supermarkets are big, clean, bright and well-stocked--yes, with luxury items, imported foods, gourmet grab-and-go. No way D&D can compete with that.
NYCSANDI (NY)
No. The young are spending a larger percentage of their income on their share of the rent and buying food at CVS and Walgreens.
Jade (NYC)
@RBC Sounds like you don't know many young people! Perhaps wage stagnation has limited the availability of expensive markets like D&D to the younger generation? NYCSANDI is right that as a result, people are paying a much higher % of their income to rent. Also nowhere in this article do they mention that there is more competition for offering niche foods these days. You could get balsamic vinegar and radicchio at any Whole Foods in 2019. I see Union Market in Brooklyn as what D&D used to be to a neighborhood.
Coco Pazzo (Firenze)
Remember when the fictional NYU student Felicity (Keri Russell) in the tv series of the same name worked there? Those days are long gone.
Matthew (New Jersey)
@Coco Pazzo Whoa, indeed, and those days were gone LONG before whoever that person is/was worked (?) there.
Lily (Toronto)
@Coco Pazzo Felicity! And Javier, the store manager!
Robin (Brooklyn, NY)
@Lily Felicity worked at the cafe/coffee bar near NYU. Japanese tourists would mistakenly come to the Prince and Broadway store asking "Felicity, Felicity?" Then they would buy tote bags and coffee mugs. It was the beginning of the end.
MRT (Harlem)
Again and again, small successful businesses sell out by going public and then become victims of rapacious investors. They continue to push annual expansion for shareholder profits while the quality of the products and services suffer a decline. You're left with a shell of a great company fighting off debt collectors while the investors move on to the next financial adventure.
a.h. (NYS)
@MRT Nothing to do with going public; private companies have greedy shareholders also. But I agree with everything else. The product doesn't seem to matter anymore. Business today is all about investors swapping companies around, and taking on huge debt is seen as 'the thing to do'. Just weird.
Lola (Greenpoint NY)
Oh man. I worked with Giorgio and Joel for years in the 80’s. I learned so much from them. There was nothing like this at the time. Soho was a scary place. This breaks my heart. Time to leave NYC.
Imagine (Scarsdale)
@Lola Time to leave NYC over Dean & Deluca?
Marjorie Summons (Greenpoint)
I mean I know your cookies must be good if you trust someone to pay $86,000. for about 47,000 cookies. I mean blind faith is one thing but...
Marjorie Summons (Greenpoint)
After the bill went over $10,000 for a macaroons I would have said "No More Macaroons for you until I get a sou M'sieur!"
GMooG (LA)
would you? what if they said they would switch to another vendor unless you extended them more credit? Real life in business is full of tough choices that most commenters don't appreciate.
Michael Z (Manhattan)
A good article but sad. Wow another big name icon in trouble. This news is a little shocking but in Manhattan we see so many restaurants, mom & pop shops, etc. - close because landlords raise the rent and in expensive NYC it's hard to survive for a lot of businesses when their rents are hiked. I have no problem paying a little extra for neighborhood businesses to make a profit, stay in business and remain in our community. Greedy landlords need to demonstrate that hiking rents for huge profits beyond what a business can afford to remain in our neighborhoods should not be their number #1 goal when a lease expires.
m.pipik (NewYork)
@Michael Z Nothing to do with rents. Everything to do with a new owner who knew (and knows) nothing about the food business which even in the best circumstances has a low profit margin. The original store in SoHo is almost devoid of inventory now. You can't make money if you don't have inventory to turn over.
MK (South village)
Joel Dean is rolling over in his grave,DeLuca, who knows. I have lived in the neighborhood since the first little store opened on Prince street. Soho has dumbed Way down as prices have gone way up, and D & D really began it’s decline around five years ago. Welcome to the new bland corporate world.
Lola (Greenpoint NY)
@MKye. Joel was a sweet man. Never without a pipe.
Andrea (Smith)
I remember thinking something wasn’t right when I visited it last spring. The people behind making these acquisitions along with the developers, do they ever consider what goes into making the math add up in real life? STAGE’s monthly rent of $250,000 would require daily revenue on average of over $275 k just to sustain itself. That’s a lot of champagne and caviar and the people apt to drop that kind of money shop at Costco.
Annie (NYC)
@Andrea Same here. My hiusband and I moved away from the city for a few years. When we came back last year, we stopped in to D&D for a cup of their hot chocolate, which we used to get as a treat. It was not the same hot chocolate we used to get, which was rich and chocolaty and topped with real whipped cream. It was syrup mixed with hot milk - and cost about $5! We also noticed that they no longer sold coffee beans or their arrabiata sauce. We figured someone else must have taken over because it was just a shadow of its former self.
Christine Leahy (Brooklyn, NY)
They didn’t even sell groceries at Stage- only sad croissants and pastries at odd hours. My office is on that block- we were excited to have a D&D on the corner. The Stage concept didn’t make sense in that neighborhood at all (already an abundance of overpriced sandwiches in that neighborhood between Chelsea Market and the like), but beyond that, they were hardly open. A place selling coffee can’t open at 10:30 am and expect to stay open long.
H (NYC)
Philippe Chow also doesn’t pay his vendors and has been sued. As with Trump, the more bold face the name, the more bankrupt the ethics. Many of these small suppliers let the account receivables grow too high because the buyers appear reputable and able to pay. Invoicing and extending credit are standard business practices. Cash on delivery isn’t. Also, the cost of bringing a collections lawsuit often can exceed your recovery.
MCV207 (San Francisco)
It was sad to watch the dwindling stocks of pantry food, kitchen items and, most importantly, high-end wines, at the St. Helena, CA store in Napa Valley. When the great Leslie Rudd (who died in 2018) owned the much-smaller chain, it was a palace of hard-to-find items and labels for that special dinner or holiday. It looked like a bus station last trip. So very sad one of my favorite stops in the valley is gone.
Spatchcock (Vancouver)
@MCV207The St Helena store was always a stop for us when in Napa. However, it was just a place to window shop. Prices always seemed very high, and unique items, more-and-more non existent. The wine section was greaf with tons of selection. But we ended up buying our wines at the Von's in Napa. With your Club Card and a 6 pack, it was way cheaper. Selection wasn't bad either!
Marjorie Summons (Greenpoint)
I think I would know not to give people more credit for croissants when the bill hit $5,000 let alone $ 75,000. Would that be about 38,000 croissants?
Matthew (New Jersey)
Because they dumbed it down. Because they replaced so many items that were from unique sources with mass-market-you-can-get-that-at-Gristedes stuff. I don't need to buy Driscoll strawberries at D&D. Back in the late 70s it was a revelation - albeit overpriced - but it really was for foodies. Now it's just a place for tourists to wander into and get in your way.
Someone (NYC)
This is very disappointing to read. I don't go to D&D often but Pace sounds like a very sleazy organization so I won't be going there again.
Alex Bernardo (Millbrae, California)
Should’ve just stayed in Manhattan.
Art Seaman (Kittanning, PA)
The few times I have been in D and D, I was usually shocked by the price. The upper crust kept this place open, not me. But it sounds like the new investor owners fell down. D and D may be gone, but now where I am going to get a $7 croissant?
Marjorie Summons (Greenpoint)
If I made $51,000 worth of layer cakes I would somewhat miffed it they didn't pay the bill. I mean I was sort of going on faith after the first $50,000.
Jimmy (NYC)
The SoHo location has declined remarkably in the last 5 years. The selection has dwindled significantly, and the quality of Dean & Deluca branded items have gone completely downhill. They've slapped their name on cheaply made kitchen items and housewares with high margins, and have taken their eye off the ball when it comes to good tasting and unique menu items. Their made-to-order food menu has completely stagnated - and items keep disappearing from the cases. The pre-made food options like sandwiches and salads taste something more like you'd find at a Pret a Manger or a convenience store and not like I'd expect to find at Dean & Deluca. Their lack of quality local suppliers - because they keep stiffing them - would explain why things have fallen off of a cliff. I hope they turn it around soon.