Fairway Market Expects Mass Layoffs At 2 Long Island Stores

PLAINVIEW, NY —Fairway Market, which filed for Chapter 11 bankruptcy protection in January, said efforts to sell four grocery stores in New York City and Long Island have proven unsuccessful and it now expects "mass" layoffs.

In a WARN notice posted on the state Department of Labor's website and amended May 15, Fairway Group Holdings Corp. said it had not found a buyer for stores in Red Hook, Douglaston, Westbury, and Plainview. The company expects a "mass layoff" at these store locations and the stores will be closed between June 5 and June 19.

More than 2,400 workers across 14 stores will be impacted by Fairway Market stores closing, the notice said. That includes 139 in Westbury, 95 in Plainview, 130 in Red Hook and 155 in Douglaston.

Patch has reached out to the chain for comment and will update when we hear back.

Last week, the chain said it transferred ownership of five New York City locations to Village Super Markets. This includes locations in the Upper West Side, Upper East Side, Chelsea, Kips Bay and Pelham.

"We want to thank the 1,400 Fairway associates that have kept this business running through the turmoil of the last seven years and more importantly the last three months," the chain wrote, referencing the coronavirus pandemic. "They are front-line heroes."

The grocery chain said it expected a mass layoff to begin April 30 at its production and distribution center stemming from delays in closing a deal with a buyer. It expects its corporate office will close and that separations were to begin May 13.

Fairway has filed for Chapter 11 bankruptcy twice 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.