NEW YORK (1010 WINS) -- Fairway Market filed for Chapter 11 bankruptcy protection on Thursday and has agreed to sell five of its 14 stores and a distribution center.
This comes just one day after denying claims that the company was declaring bankruptcy and closing down stores.The stores that will remain open are the Upper West Side flagship, as well as the Upper East Side, Harlem, Kips Bay and Chelsea locations.
Their deal with Village Supermarket, who also owns the ShopRite chain, is estimated to be about $70 million.
The deal is said to have been a stalking horse agreement, which would allow other businesses to bid for the properties.During the sale processs, Fairway says it will continue to engage with other potential bidders and may also enter into transactions for other stores."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," CEO Abel Porter said, in a statement. "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."Fairway Market had previously filed for chapter 11 protection in 2016, but then proceeded with a restructuring plan, slashing its debt by more than half.The original Fairway Market began in 1933 on the Upper West Side as a fruit and vegetable stand.