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Fairway to sell five NYC stores, distribution center

Fairway Market has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York to complete its strategic sale process.  The company has entered into a stalking horse asset purchase agreement with Village Super Market Inc. to sell up to 5 New York City Fairway stores and its distribution center for approximately $70 million.  In addition, the company will execute a court supervised sale process to continue to negotiate for the sale of its remaining store locations.  An group of the company's senior lenders are supportive of the sale process and have agreed to provide the company with up to $25 million in debtor in possession financing.fairway

Fairway Market will continue to conduct business and serve customers at its stores across the tri-state area and expects no interruption in service during the court-supervised process. Fairway Market stores will continue to offer a complete range of high quality, specialty food products, and all existing customer promotional and loyalty programs will stay in place during this process.

"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," said Abel Porter, chief executive officer at Fairway Market. "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."

Village Super Market Inc. operates a chain of supermarkets and specialty markets in the Northeast under the ShopRite and Gourmet Garage banners.  "Perry and Nick Sumas opened the first Village Market in 1937, and our family continues to believe deeply in the importance of neighborhood 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.