Fairway files for bankruptcy with a plan to keep some stores open

Fairway Market has filed for Chapter 11 bankruptcy protection, a day after refuting reports that it was planning to close all its stores.

Additionally, Fairway will begin a court-supervised sale process to continue negotiations for the sale of its nine remaining stores.

Fairway, which has 14 stores, entered into what's known as a stalking horse agreement with Village Super Market, the owner of ShopRite, to sell up to five NY stores and a distribution center for $70 million.

Fairway had denied a report on Wednesday, Jan. 22 that it was closing all of its stores and declaring another form of bankruptcy, Chapter 7, before making its announcement on Thursday, Jan. 23.

During the court-supervised process, Fairway said it would continue to run its stores, with no interruption in service, and that all existing customer promotional and loyalty programs would remain in place.

This is Fairway's second bankruptcy in four years. Village Super Market's offer is a stalking-horse bid, meaning it would be the starting price for the stores in an auction.

Fairway CEO Abel Porter said in a statement that a sale is the best way to preserve jobs and position Fairway for "long term success under new ownership".

"Fairway's iconic Manhattan stores include some of the most productive supermarkets in the United States and employ hundreds of people", noted Scott Moses, managing director and head - food retail and restaurants investment banking at New York-based PJ Solomon.

Notícias recomendadas

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.