Could this be the end of Fairway Market as we know it?
As predicted, the grocery chain filed for chapter 11 bankruptcy protection on Monday as part of a restructuring plan to help get rid of its $279 million in debt. The company has yet to have a profitable quarter since it went public three years ago, shares have dropped over 90 percent over the past year, and the company faces growing competition from Whole Foods, Trader Joe’s, and cheaper mass retailers.
According to the company, the restructuring plan will not only help ease the burden of its loans but will also “restore Fairway to long-term financial health,” reports the New York Times. Fairway expects no interruption in service for its 15 groceries and four wine and spirits stores during this process.
The chain traces its beginnings to a fruit and vegetable stand on the Upper West Side opened in the 1930s. “Fairway is famous for apples stacked to the ceiling, olives straight from Italy, New York style bagels, hand sliced smoked salmon, prime beef and specialty imports,” Jack Murphy, Fairway’s chief executive, said in a statement. “Nobody slices a fish or boils a bagel like us. Nobody.”
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