One day after Fairway Market refuted press reports that it was filing for Chapter 7 bankruptcy, the 14-store grocery chain instead quietly filed for Chapter 11 bankruptcy in the middle of the night.
Fairway Market made its filing in the U.S. Bankruptcy Court for the Southern District of New York today at 1:21 a.m. The company had previously filed for Chapter 11 bankruptcy in 2016 after losing money in every quarter following its 2013 public offering.
The company also announced it entered a $70 million stalking horse asset purchase agreement with Village Super Market, which operates 30 stores under the ShopRite banner, for five of its New York City stores and its distribution center. It added that the bankruptcy court would run a supervised sale process of its other nine stores, which will remain open during this period.
“We would like to extend gratitude to our employees, vendors, distributors and customers for their support, dedication and loyalty over the years,” said Abel Porter, CEO at Fairway Market. “It has always been Fairway’s priority to ensure our patrons are provided with the most optimal grocery experience, with the freshest foods and best quality products, and our employees feel appreciated. After careful consideration of all alternatives, we have concluded that a court-supervised sale process is the best way to meet our objectives of preserving as many jobs as possible, maximizing value for our stakeholders, and positioning Fairway for long term success under new ownership.”
Founded in 1933 as a fruit-and-vegetable stand on Manhattan”™s Upper West Side, the company operates stores in New York, New Jersey and Connecticut. Within this region, Fairway Market has a supermarket and adjacent liquor store at 699 Canal St. in Stamford as well as at the Post Road Plaza shopping center in Pelham Manor; both locations opened in 2010. The chain operated a store in Nanuet from 2013 until its closing in September.
