the staff of the Ridgewood blog
Paramus NJ, we received in initial reported that Fairway the iconic New York City grocery chain is planning to file for a Chapter 7 bankruptcy, which means the grocery chain does not currently have a plan to continue to exist unlike when it filed what’s known as a Chapter 11 reorganization plan in 2016.
Under the current plan, Fairway will close all 14 of its stores, including its flagship store at Broadway and West 74th Street. The liquidation could be announced as soon as Wednesday.The liquidation plan comes despite ongoing interest by a potential rival in acquiring the Fairway brand, which dates to 1933, when the Glickberg family opened a fruit and vegetable stand on the Upper West Side.
Sources claim Village Super Market, the publicly held owner of ShopRite, has expressed interest in acquiring a handful of Fairway stores and keeping the name.
Fairway has been toying with bankruptcy protection since the start of the year after failing to find a buyer for its 14 stores.
UPDATE: Fairway, the iconic New York grocer, announced it has “no intention” to close all its stores, disputing a published report.
“Fairway Market has no intention to file for chapter 7 [bankruptcy] or liquidate all of its stores,” the company said. “Such statements are categorically untrue and disappointing.”
The company left the door open to filing for reorganization under Chapter 11 of the bankruptcy code, which could resulting in closing some or even many stores. Fairway said it expects to soon announce a “value maximizing transaction that will provide for the ongoing operations of stores.” The supermarket added that lenders remain “extremely supportive” of its efforts.
