Fairway Market Denies Stores Will Close Amid Bankruptcy Reports

NEW YORK CITY — Fairway Market on Wednesday denied reports that it would declare bankruptcy and close its grocery stores. Fairway issued the statement after the New York Post reported that the grocery chain would file for Chapter 7 bankruptcy and soon shutter its 14 stores, including the one in Pelham.

"Despite reports, Fairway Market has no intention to file for chapter 7 or liquidate all of its stores," a representative said in a statement. "All 14 stores remain open for business."

Fairway closed its Nanuet store last year.

According to the company, "It wasn't an easy decision, but the decision was made due to the closing of other major retailers at the shopping complex and the resulting significant decrease in foot traffic at the mall. This is an isolated business decision as a result of the changes within the Shops at Nanuet."

Rumors that Fairway would close have been circulating for weeks since the Post first reported Fairway was considering bankruptcy after failing to find a buyer last year.

It would not be Fairway's first brush with bankruptcy. The company dug itself out of Chapter 11 proceedings in 2016 by borrowing money and shifting ownership from Sterling Investment Partners to a consortium led by Blackstone's GSO Capital Partners.

Prospective buyers, among them Village Super Market, would take on a $174 million debt that included $6 million in rent on its flagship store, sources told the Post.

The iconic market has been providing New Yorkers groceries since 1933 when the Glickberg family opened a small fruit and vegetable stand on the Upper West Side of Manhattan, according to the company website.

The flagship store opened on Broadway and West 74th Street in 1954.

Kathleen Culliton, Patch Staff, contributed to this report.

Despite reports, Fairway Market has no intention to file for chapter 7 or liquidate all of its stores. 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. pic.twitter.com/eqiMFODBGW
— Fairway Market (@FairwayMarket) January 22, 2020