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Fairway Files for Chapter 11, Seeks Sale of All Stores
Fairway Market entered into a stalking-horse asset purchase agreement for up to five Manhattan stores along with its Bronx distribution center, and is seeking to sell its remaining nine locations under a Chapter 11 petition filed Thursday in Manhattan. The New York City-based supermarket chain has secured a commitment for up to $25 million of debtor in possession financing.
The five Manhattan stores and Bronx facility are slated to sell for approximately $70 million to Village Super Market Inc., a publicly-traded owner/operator headquartered in Mountainside, NJ. For Fairway, Thursday’s filing represented its second bankruptcy in four years.
“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,” said Fairway CEO Abel Porter.
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