Fairway Market to sell 5 stores, file for Chapter 11 bankruptcy
NEW YORK (WABC) -- Fairway Market is filing for Chapter 11 bankruptcy and will sell up to five of its stores and its distribution center to Village Super Market, Inc., the owner of several ShopRite locations, for $70 million.
The sale to Village Super Market includes the iconic Upper West Side store at 2131 Broadway.
Also being sold are:
- The Harlem store on 2328 12th Ave. (at 125th Street)
- The Chelsea store at 766 Sixth Ave.
- The Kips Bay store at 550 Second Ave.
- The Upper East Side store at 240 E. 86th St
The new owner said it is committed to keeping the Fairway name and product lineup at these five stores.
Fairway will then begin to sell its remaining store locations under court supervision.
On Wednesday, the company denied a report it was declaring another form of bankruptcy, Chapter 7, and closing all of its stores.
Fairway says it will continue to serve customers at its stores throughout the Tri-State Area and that customer promotions and loyalty programs will remain in place.
"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," Fairway CEO Abel Porter said. "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."
In addition to several ShopRite stores, Village Super Market operates Gourmet Garage grocery stores.
"We appreciate that Fairway's loyal customers are concerned about the future, and if we are successful in our bid, we are committed to keeping Fairway, including its name, unique product selection and value, a part of this community," said Robert Sumas, CEO of Village Super Market, Inc.
Fairway Market has been a fixture in New York City since the 1930s.
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