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Fairway filing for bankruptcy again...

missy

Super_Ideal_Rock
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Jun 8, 2008
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Unhappy news for those of us who enjoy Fairway and the fresh and organic food they offer. I believe this is only a NY based grocery chain so doesn't affect most people but fyi for those of us who enjoy shopping there. Doesn't look good for Fairway's survival.

Almost 4 years ago:



and again now:


Legendary Big Apple grocer Fairway Market is getting ready to call it quits, The Post has learned.
The New York City chain — known for its wide selection of cheeses and cheap produce — 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, sources told The Post.
Under the current plan, Fairway will close all 14 of its stores, including its flagship store at Broadway and West 74th Street, sources said. The liquidation could be announced as soon as Wednesday, sources said.
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 said.
Village Super Market, the publicly held owner of ShopRite, has expressed interest in acquiring a handful of Fairway stores and keeping the name, sources tell The Post.
“Village Super Market is very well capitalized and they are successful in the suburbs,” said one industry insider. “There are no ShopRites in Manhattan,” this person said of the firm, which did not respond for comment.
As The Post first reported on Jan. 2, Fairway has been toying with bankruptcy protection after failing to find a buyer for its 14 stores last year.
Aside from Village Super Market, prospective buyers of stores owned by Brigade Capital Management and Goldman Sachs Group were scared off by its $174 million debt and expensive leases, including $6 million in rent on its flagship store, sources explained.




Fairway Market, the beloved Big Apple grocer that has been a staple on the Upper West Side for nearly a century, is on the verge of filing for bankruptcy — again, The Post has learned.
Known for its quality produce, prepared foods, cheeses and smoked fishes, Fairway is now preparing to seek bankruptcy protection this month after failing to find a buyer for its 14 stores, multiple sources tell The Post.
The legendary chain, whose tag line is “Like no other market,” may even lose its flagship store on Broadway and West 74th Street as competitors, including ShopRite, have toured the store with an interest in acquiring the real estate, sources say.
“If they are selling their flagship store, which makes all the money, this could be a liquidation instead of a reorganization,” a well-placed source said.
Fairway’s downturn started in 2007 when the Glickberg family sold an 80% stake to private equity firm Sterling Investment for $140 million. Four generations of the family had owned and operated a handful of Fairways in NYC, starting with a fruit-and-vegetable stand that opened in 1933.
Fairway quickly fell victim to Sterling’s aggressive expansion plan aimed at enticing suburban shoppers, which only served to burden the company with a crushing $300 million in debt. Sterling took Fairway public in 2013 and worked to transform the local city grocer into a national chain with 300 stores, including many in the burbs.
Three years later, in May 2016, it filed for Chapter 11 protection after losing money in every quarter of its life as a publicly held company.


It was bought out of bankruptcy by an investment arm of Blackstone, GSO Capital, which recently sold its stake.

https://nypost.com/2016/05/03/fairway-files-for-chapter-11-bankruptcy/
Now owned by lead shareholders Brigade Capital Management and Goldman Sachs Group, Fairway is quietly closing stores with the most recent shuttering in Nanuet, New York — a 65,000-square-foot store that closed in September. Sources say another two stores in New Jersey — in Paramus and Woodland Park — are likely next on the chopping block.
Half of its 14 stores — and the ones struggling the most — are in the suburbs of Long Island, Connecticut and New Jersey, sources said.
“No one bought Fairway because there are still some suburban properties that need to be sold off and its debt is too high,” said retail consultant Burt Flickinger.
Fairway has at least $172 million in debt that matures in 2023 and 2024, according to David Tawil, an expert on distressed debt, who said companies often seek bankruptcy ahead of their debt coming due if they are in danger of tripping debt covenants, including agreements to meet certain financial projections.
In recent months, the grocer has been dangling deals — including coupons for $10 off a $50 bill — to lure in shoppers as it struggles to compete with rivals like Trader Joe’s, which muscled into Fairway’s Upper West Side turf a decade ago with lower prices and a cult-like following.
But the grocer’s once-lush produce section has grown skimpy “and they have raised prices,” bemoaned a source with knowledge of the bankruptcy, who did not want to be identified.
“It went from an everyday, low price model to a typical high-priced supermarket,” this person said.
Fairway did not return calls for comment.
 

Tekate

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Sorry Missy that is a bummer. Do you have a Whole Foods near you? I know you mentioned in NIRDIs that you went to Wegman's.. Wegman's is known around upstate as the best ever ever ever etc grocery store in the universe, people love it and their employees love it.. I have only been to 1 Wegman's years ago when I was visiting my sister in Erie PA... my roomate was one of 'the' Wegman's when I transferred to an upstate college from the city... she was a good kid. Wegman's is known for their fresh veggies etc.. my sister loved Wegman's too... maybe try Wegman's again? I have always been impressed with Whole Foods but not their prices.. xo
 

missy

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Sorry Missy that is a bummer. Do you have a Whole Foods near you? I know you mentioned in NIRDIs that you went to Wegman's.. Wegman's is known around upstate as the best ever ever ever etc grocery store in the universe, people love it and their employees love it.. I have only been to 1 Wegman's years ago when I was visiting my sister in Erie PA... my roomate was one of 'the' Wegman's when I transferred to an upstate college from the city... she was a good kid. Wegman's is known for their fresh veggies etc.. my sister loved Wegman's too... maybe try Wegman's again? I have always been impressed with Whole Foods but not their prices.. xo
Yeah we like Whole Foods but I agree with you- they are expensive. We also have a Wegman's near us so that is something but they don't have as much stuff I like as WF and Fairway. Also we have Trader Joe's but it is hard to get to shop there as they do not have parking. We have lots of options but I will miss Fairway.
 

mary poppins

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Big bummer. Loved going to Fairway when I lived there and have gone back when visiting the city. I prefer it to WF and TJ. Only knew about the location across the Beacon Theater.
 

OdetteOdile

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Aug 8, 2019
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Sadness. I loved Fairway and it brings back many happy memories of my 20's living on the Upper West Side. It was intense in there, but great food, great prices. One time I went in after work and was picking up a few things because we were having friends over - just probably olives, a baguette, cheese, etc. And I was reaching for a bouquet of flowers, and a lovely woman - a random stranger! - told me that I looked like I was from a movie. My goodness - I will never forget that.
 

missy

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Fairway is denying they are filing for bankruptcy.



New York City-based grocer Fairway Market said it has “no intention” of filing for bankruptcy amid media reports stating that it was planning to shut down.

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

Well, we shall see. I would love the above to be true but my gut says they are going down. Time will tell.
 

Mlh

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Dec 6, 2019
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I go to the one on the UES often. Hope it doesn't close
 

missy

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