Deals
Fairway Returns to Bankruptcy, Aims to Sell Manhattan Stores
- Chapter 11 filing allows iconic chain to keep operating
- Agrees to sell stores to owner of 30 ShopRite markets
A Fairway market in New York on April 17, 2013.
Photographer: Victor J. Blue/Bloomberg
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Fairway Group Holdings Corp. has gone bankrupt for the second time since 2016, overwhelmed by its lingering debt load and cutthroat price competition in the grocery business.
The New York grocer filed for Chapter 11 bankruptcy early Thursday morning with an agreement to sell five stores and a distribution facility to Village Super Market Inc., owner of 30 ShopRite supermarkets. The deal, with a purchase price of about $70 million, will act as a so-called stalking-horse bid that sets a floor for other potential offers in an auction, Chief Executive Officer Abel Porter said in court papers.