Farewell to Fairway? Beloved New York food market files for bankruptcy protection, looks to sell stores
UPDATE: A day after denying that it planned to liquidate, Fairway Market announced Thursday the New York grocery chain had filed for Chapter 11 bankruptcy protection. In a news release, the company said it entered into a stalking horse asset purchase agreement with Village Super Market, Inc. to sell up to five New York City Fairway stores and its distribution center for approximately $70 million. The company is looking to sell its other locations and "will continue to conduct business and serve customers at its stores across the tri-state area and expects no interruption in service during the Court-supervised process." Fairway also posted frequently asked questions Thursday.
New York grocery chain Fairway Market on Wednesday denied a report that it plans to liquidate.
The New York Post reported that the grocer was "getting ready to call it quits" with a Chapter 7 bankruptcy, which would involve closing its 14 stores. The publication said the plan could be announced as soon as Wednesday.
But Fairway Market said it's here to stay.
"Despite reports, Fairway Market has no intention to file for chapter 7 or liquidate all of its stores. Such statements are categorically untrue and disappointing," the company said in a statement. "All 14 stores remain open for business," it added.
The company said it's "been engaged in a strategic process and expects to soon announce a value maximizing transaction that will provide for the ongoing operations of stores. Our lenders remain extremely supportive of our efforts."
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
Founded by Nathan Glickberg as a corner fruits-and-vegetables stand on Manhattan's Upper West Side, Fairway Market opened in the 1930s. The company's flagship store is located at Broadway and West 74th Street.
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The company has stores in New York, Connecticut and New Jersey.
On social media, customers expressed concern over the chain's potential demise.
Ugh. This is a dagger to NYC’s heart. EVERY obscure cooking ingredient ever dreamed up is on @FairwayMarket shelves. (Okay, most.) Harlem 125th St. location overlooking the water has been my jam for over 20 years. 😭😭😭 https://t.co/ckeXeHqfb6
— Cheyenne E. Batista (@cheysays) January 22, 2020
This is the worst news I've read all week, and that's really saying something. NYC needs you, @FairwayMarket!
https://t.co/TzeOBhTLTd— Catesby (@CatesbyHolmes) January 22, 2020
Contributing: Kelly Tyko
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.
This article originally appeared on USA TODAY: Fairway Market bankruptcy: New York grocery chain files for Chapter 11
