Fairway Supermarkets Approaching Bankruptcy, Report Says

NEW YORK, NY — New York City-based supermarket chain Fairway is approaching another bout with bankruptcy, according to reports.

The supermarket company may be forced to declare bankruptcy, which could result in the closure of its 14 stores, the New York Post reported. Sources with information on the company's financial situation told the Post "this could be a liquidation instead of a reorganization."

Fairway's Upper West Side flagship location on Broadway and West 74th Street has recently drawn interest from competing supermarket brands interested in buying up the real estate, the Post reported. The company operates 14 stores, nine of which are located in the city and the rest in surrounding suburbs.

A spokesman for Fairway did not immediately return Patch's request for comment.

At one point, Fairway's owners planned to open as many as 300 stores nationwide. The expansion plan was enacted when a majority of the company was acquired by private equity firm Sterling Investment, which later took the company public.

This isn't Fariway's first brush with bankruptcy. The company was able to dig itself out of Chapter 11 proceedings in 2016 by borrowing money in exchange for equity. The reorganization shifted ownership of Fairway from Sterling Investment Partners to a consortium led by Blackstone's GSO Capital Partners.

Fairway began as a small produce stand on Manhattan's Upper West Side and has since grown to a 14-store network. The founders of the business, the Glickberg family, ran the store for four generations before selling it to private equity.

Read the full New York Post article here.