Fairway Market, together with certain of its affiliates, 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 to sell up to five 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 ad hoc 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. According to court documents, Ankura Trust is serving as administrative agent and collateral agent for the DIP financing.

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.

“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, CEO 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 operates a chain of supermarkets and specialty markets in the Northeast under the ShopRite and Gourmet Garage banners.


Fairway Market’s legal counsel is Weil, Gotshal & Manges, its M&A investment banker is PJ Solomon and its financial advisors are Mackinac Partners.

The ad hoc group of senior lenders are represented by King & Spalding.