Fairway Market Files For Chapter 11 Bankruptcy, Plans To Sell 5 Stores

WCBS 880 Newsroom
January 23, 2020 - 6:06 pm
Fairway Market

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NEW YORK (WCBS 880) — Fairway Market on Thursday filed for Chapter 11 bankruptcy protection and agreed to sell five of its 14 stores and a distribution center.

Village Supermarket, which owns the ShopRite chain, has agreed to purchase the properties for about $70 million.

The stores within the five boroughs expected to be sold off include the Upper West side flagship location, Upper East Side, Chelsea, Harlem and Kips Bay.

In a statement, CEO Abel Porter said, "We would like to extend gratitude to our employees, vendors, distributors and customers for their support, dedication and loyalty over the years. 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."

Fairway says it will continue to engage with other potential bidders during the sale process and may enter into transactions for other stores.

The announcement comes one day after the shop denied reports that it planned to file for Chapter 7 bankruptcy and close all of its stores.

The original market opened on the Upper West Side in 1933.