Grocery retailer Fairway Market has filed for Chapter 11 bankruptcy protection, with plans to reduce its debt by approximately $140 million and restore its long-term financial health. Fairway will continue to operate in the normal course of business without interruption through the restructuring.
The retailer, with roots that go back 80 years, operates 15 stores in the New York City area, but it has lost money in every quarter since going public in 2013. Fairway recently announced net sales of $179.8 million for Q2 2016, down from $194 million in Q2 2015.
Through the “prepackaged” bankruptcy plan, holders of general unsecured claims, including suppliers, employees, unions and other trade creditors, will receive payment in full.
“We believe that implementing this Prepackaged Plan is the best opportunity for Fairway to restructure its balance sheet on an expedited basis, strengthen its operations, retain jobs and create long-term value,” said Fairway CEO Jack Murphy in a statement.