Fairway Market has announced the outcome of its bankruptcy auction this week, resulting in winning bids for six Fairway stores (five New York stores to Village Supermarket and one store to Seven Seas Georgetown) and the sale of two real estate leases to Amazon.
The grocery retailer filed for Chapter 11 bankruptcy in January in the wake of intensifying competition from brick and mortar chains such as Whole Foods and Trader Joe’s and online grocers namely FreshDirect.
Village’s winning bid includes four of Fairway’s Manhattan stores as well as Fairways production and distribution center for a purchase price of approximately $76 million. Seven Seas’ winning bid is for the Georgetowne store in Brooklyn for a purchase price of approximately $5 million. Amazon’s winning bid is for the leases in Paramus and Woodland Park in New Jersey for a purchase price of $1.5 million.
Fairway Market continues to serve its communities by operating all of its stores including stores not sold during the court-supervised auction, and intends to do so for the foreseeable future to accommodate the current public need for our products.
“We are pleased with the outcome of the auction and are grateful for our dedicated and hard-working employees, suppliers and distributors during this process which has taken place in these unprecedented times,” said Abel Porter, CEO at Fairway Market. “Serving our community has always been our top priority, and we remain committed to providing quality items and a safe shopping environment for our customers and our employees during this global health crisis.”