Fairway isn't going out of business, but it will sell 5 stores and file for bankruptcy protection
Photo: Victor J. Blue/Bloomberg via Getty Images The reports are true. After rumors swirled yesterday that Fairway will go out of business, the grocery chain announced today that it has filed for voluntary Chapter 11 bankruptcy protection, so that it can complete a $70 million sale to Village Supermarket, Inc., a company that currently operates ShopRite and Gourmet Garage. If the sale goes through, it will include Fairway’s distribution center and five Fairway locations.
It’s not quite the doom that New Yorkers were greeted with yesterday, when the New York Post reported that Fairway was filing for Chapter 7 bankruptcy and planning to close all of its stores, but it’s also not the bright, cheery situation that Fairway offered in its extremely carefully worded rebuttal of that report.
In a press release, Village CEO Robert Sumas says that the company is “committed to keeping Fairway, including its name, unique product selection and value, a part of this community.”
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