Fairway Market, With 2 LI Locations, Files For Bankruptcy

PLAINVIEW, NY — Fairway Market, which has locations in Plainview and Westbury, will begin selling off its grocery stores after declaring bankruptcy Thursday.

In a tweet Thursday, the Abel Porter, the company's CEO, expressed gratitude to its employees, vendors, distributors and customers.

"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," Porter said. "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."

Grocery stores will remain open as the company sells off its markets, Fairway said. Fairway Food Markets in Massapequa is unaffiliated with the chain and is not impacted by the closing, the store confirmed to Patch on Thursday.

Shoprite's parent company Village Super Market is preparing to buy five Fairway Markets — the Upper West Side flagship, Harlem, Chelsea, Kips Bay and Upper East Side — for $70 million, according to bankruptcy court declarations.

Robert Sumas, CEO of the parent company, said the five Fairways will keep the company name and signature products.

"We appreciate that Fairway's loyal customers are concerned about the future, Sumas said. "If we are successful in our bid, we are committed to keeping Fairway, including its name, unique product selection and value, a part of this community."

Fairway filed a Chapter 11 bankruptcy days after disputing a New York Post report that it would file a Chapter 7 and close all its stores.

Thursday's declaration was Fairway's second Chapter 11 filed in four years. 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.

The iconic market has been providing New Yorkers groceries since the mid-1930s and has since expanded to 21 locations across the tri-state area.

The Glickberg family launched the business as a small fruit and vegetable stand on the Upper West Side.

Patch New York City staffer Kathleen Culliton contributed reporting.