Fairway Market files for bankruptcy, plans to sell stores

Village Super Market to buy up to 5 of Fairway’s NYC stores

New York /
Jan.January 23, 2020 09:29 AM
Fairway Market (Credit: Getty Images)

Fairway Market (Credit: Getty Images)

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

The company said Thursday it had entered into an agreement with Village Super Market to sell up to five New York City stores and the company’s distribution center for about $70 million. The deal was characterized as a “stalking horse” agreement, which means other businesses could also put in bids on the properties. The New York Times first reported the news.

Under court supervision, the company will also seek to sell its remaining stores, though it will “continue to conduct business and serve customers at its stores across the tri-state area and expects no interruption in service,” the company said.

The announcement follows a New York Post report Wednesday that suggested the grocer was planning to liquidate. As distressed customers lamented the news on social media, Fairway Market tweeted a rebuttal, stating that “Fairway Market has no intention to file for chapter 7 or liquidate all of its stores,” adding: “All 14 stores remain open for business, offering a complete range of high quality, specialty food products, and we look forward to seeing our customers and employees.”

Fairway did shut one store in September, in Nanuet, a Rockland County hamlet. It called that decision an isolated case, citing a drop in foot traffic at the mall where the store was housed after other stores in that shopping center closed.

In a statement Thursday, Fairway Market CEO Abel Porter thanked employees, vendors and customers for their support.

“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,” he said. [NYT] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Retail asking rents declined across Brooklyn this summer
Retail asking rents declined across Brooklyn this summer
Retail asking rents declined across Brooklyn this summer
Covid surge dims enthusiasm for ICSC Vegas conference
Covid surge dims enthusiasm for ICSC Vegas conference
Covid surge dims enthusiasm for ICSC Vegas conference
Apple to open first Bronx store, 11 location in New York
Apple to open first Bronx store, 11th location in New York
Apple to open first Bronx store, 11th location in New York
Torchlight Investors CEO Daniel Heflin and 445 Fifth Ave (Google Maps, National Institute of Public Finance)
Harbor Group owes more money in Fifth Ave foreclosure suit, lender claims
Harbor Group owes more money in Fifth Ave foreclosure suit, lender claims
2307 Beverley Road in Flatbush, Brooklyn (Getty)
Sears closing up shop in New York City
Sears closing up shop in New York City
The Broadway location of Halloween Adventure (Facebook via New York Costumes / Halloween Adventure)
Halloween Adventure to vacate East Village home as retail condo hits market
Halloween Adventure to vacate East Village home as retail condo hits market
LVMH Chairman and CEO Bernard Arnault (right), Dacra CEO Craig Robins and the Louis Vuitton store in Miami’s Design District
Making it rain in Miami’s Design District
Making it rain in Miami’s Design District
Purchases across the country rose 0.7 percent in August, easily outpacing estimates by retail analysts. (iStock)
Big month for retail sales bodes well for landlords
Big month for retail sales bodes well for landlords
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...