Sponsored By

Fairway Market receives higher offer for Manhattan locations

Food Bazaar operator Bogopa makes $75 million bid for 6 stores, distribution center

Russell Redman

March 12, 2020

3 Min Read
Fairway Market store exterior
When announcing its Chapter 11 bankruptcy filing in January, Fairway said it had a stalking-horse bid for its Manhattan stores and DC from ShopRite owner-operator Village Super Market.Fairway Market

Another suitor has emerged for the Manhattan stores and distribution center of upscale grocer Fairway Markets, which has been in Chapter 11 bankruptcy protection since late January.

Fairway said yesterday evening that it has received a $75 million “qualified overbid” for its five stores in Manhattan, store in Pelham Manor, N.Y., and DC in the Bronx from Bogopa Enterprises Inc. Brooklyn, N.Y.-based Bogopa operates 26 Food Bazaar supermarkets in New York City, New York’s Westchester County and Long Island, New Jersey and Connecticut.

On Jan. 23, Fairway announced that it had filed for Chapter 11 and plans to sell all of its 14 metropolitan New York-area stores. The same day, the company also said it received a $70 million stalking-horse bid for its five Manhattan stores and DC from Wakefern Food Corp. cooperative member Village Super Market. Springfield, N.J.-based Village owns and operates 30 ShopRite supermarkets in New Jersey, Maryland, New York City and Pennsylvania and three Gourmet Garage specialty markets in New York City.

Fairway reported Wednesday that it’s evaluating competitive offers for various other stores. Plans call for an auction to be held on March 16 under the Chapter 11 court-supervised sale process.

Food Bazaar-Bogopa Enterprises-Bronx Terminal Market

Bogopa's Food Bazaar supermarket banner opened its fifth Bronx location in January at the Bronx Terminal Market.

“We would like to extend gratitude to our employees, vendors, distributors and customers for their continued support, dedication and loyalty during this process,” Fairway Market CEO Abel Porter said in a statement. “Fairway’s store performance has generated significant interest in our stores. We look forward to a robust auction.”

Related:Fairway Market files for Chapter 11, plans to sell all stores

Fairway now has eight stores in New York City, including five in Manhattan (Chelsea, Harlem, Kips Bay, Upper East Side and Upper West Side), two in Brooklyn (Georgetown and Red Hook) and one in Queens (Douglaston). The retailer also operates two stores in Long Island (Westbury and Plainview); one in Westchester County (Pelham Manor); two in New Jersey (Paramus and Woodland Park); and one in Connecticut (Stamford).

In addition, Fairway’s website lists four Wine & Spirits stores among its locations, including two outlets in New Jersey and one each in New York and Connecticut.

Bogopa has 17 Food Bazaar stores in New York City, including six in Brooklyn, five in the Bronx and six in Queens. The other New York stores are in Mount Vernon (Westchester County) and Brentwood (Long Island). Bogopa’s store network also includes five Food Bazaars in New Jersey and two in Connecticut, one of which is a Farmers Market by Food Bazaar location.

Related:Fairway Market says it has ‘no intention’ to liquidate

For the bankruptcy and sale process, Fairway has retained Weil, Gotshal & Manges as legal counsel, PJ Solomon as M&A investment banking adviser and Mackinac Partners as financial adviser.

“The pivotal role our sector is playing during this extraordinary time further demonstrates the critical importance of supermarkets to our communities all around the country,” Scott Moses, managing director and head of food retail and restaurants investment banking at New York-based PJ Solomon, said in an email on Thursday. “While all of our clients’ projects are personal, the role Fairway is playing in our community these past few weeks emphasizes the importance of this project in a new way. These Fairway stores and DC employ over 1,500 people, preserving grocery jobs remains a core focus of our work.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like