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Fairway Market says it has ‘no intention’ to liquidate

Upscale metro New York grocer denies reports of planned Chapter 7 filing

Russell Redman

January 22, 2020

3 Min Read
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Fairway Market said Wednesday that it’s in talks to secure financing that would keep stores in operation.Fairway Market

Fairway Market today denied published reports that it plans to liquidate and close all of its 14 stores in metropolitan New York.

Fairway said Wednesday that it’s in talks to secure financing that would keep stores in operation. The New York-based upscale grocer called reports that it aims to file for Chapter 7 bankruptcy “categorically untrue and disappointing.” This morning, the company also denied the liquidation reports in a tweet.

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“Despite reports, Fairway Market has no intention to file for Chapter 7 or liquidate all of its stores,” the company said in a statement released today. “Fairway has 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.  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.”

The New York Post reported yesterday that Fairway, according to unnamed sources, was “getting ready to call it quits” with plans to file for Chapter 7 and shut all of its stores. Following Fairway’s statement on Wednesday, another Post article said the grocer declined to elaborate on its plans going forward and “didn’t deny that the company was planning to close stores.”

Related:Report: Fairway Market readies another Chapter 11 filing

Currently, Fairway operates eight stores in New York City (five in Manhattan, two in Brooklyn and one in Queens); two in Long Island, N.Y.; one in New York’s Westchester County; two in New Jersey; and one in Connecticut. The retailer’s website also lists four Wine & Spirits stores among its locations, including two outlets in New Jersey and one apiece in New York and Connecticut.

Earlier this month, the Post reported that Fairway was planning to file for Chapter 11 bankruptcy protection after unsuccessful efforts to find a buyer for its stores. The Post also said that Fairway, owned by lead shareholders Brigade Capital Management and Goldman Sachs Group, is “quietly closing” stores. Fairway didn’t respond to Supermarket News’ request for comment on the report.

Also in early January, debt markets news service Debtwire reported that Fairway retained law firm Weil, Gotshal & Manges as the retailer mulled a possible bankruptcy filing. In addition, Debtwire said Fairway tapped financial advisory firm PJ Solomon for counsel on strategic options, including a potential sale.

The New York Post’s reports this week said Village Super Market Inc., a ShopRite owner-operator based in Springfield Township, N.J., has expressed interest in Fairway locations.

Related:Fairway goes digital to get local

Debtwire noted that Fairway has continued to struggle in an “uber-competitive environment” in the retail grocery arena following a recent reorganization.

In May 2016, parent company Fairway Group Holdings made a "prepackaged" Chapter 11 filing in which lenders agreed to exchange existing debt for new equity and debt in a reorganized company. The retailer emerged from Chapter 11 in June 2016. That came after Fairway couldn’t overcome heavy debt and high costs that persisted following an initial public offering in 2013, in which the company envisioned an aggressive expansion to potentially hundreds of stores.

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

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