One day after denying reports it would file for Chapter 7 bankruptcy and liquidate its stores, New York City-based grocery chain Fairway Market has filed for Chapter 11 bankruptcy and disclosed a plan to sell five of its 14 stores, the company said Thursday.
The grocer will sell its stores and a 250K SF distribution center to Village Super Market, a publicly traded company that owns suburban grocery chain ShopRite, for about $70M, according to Fairway's bankruptcy filing.
The New York Post first reported Fairway's plans to file for bankruptcy, although sources told the paper the company would file for Chapter 7 liquidation, prompting a statement by Fairway denying the report.
Despite reports, Fairway Market has no intention to file for chapter 7 or liquidate all of its stores. 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. pic.twitter.com/eqiMFODBGW
— Fairway Market (@FairwayMarket) January 22, 2020
Fairway, which started in the 1930s as a fruit and vegetable stand on the Upper West Side, has now filed for bankruptcy twice in the last five years. The grocery chain also filed for bankruptcy in 2016.
GSO Capital bought Fairway out of bankruptcy, and later sold its stake to Brigade Capital Management — which was an owner of Gymboree when it liquidated its stores earlier this month — and Goldman Sachs Group. The owners have been trying to find a buyer for Fairway to help manage its $172M debt burden,
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