A New York-based upscale grocery chain has apparently reached a deal with creditors that would allow it to file for Chapter 11 bankruptcy protection while continuing to operate, according to a report by Bloomberg.
The agreement would allow Fairway Group Holdings, the parent corporation of Fairway Markets, to restructure its debts, the Bloomberg report said, citing unnamed sources.
While terms have yet to be hammered out, there is a possibility that some of the chain’s less profitable stores will close, according to Bloomberg.
The exact locations have yet to be determined, the Bloomberg story said.
Fairway has 14 locations in the tri-state area, including grocery stores in Nanuet; Paramus, N.J., and Woodland Park, N.J., and three wine and spirits shops, including one in Pelham Manor and one in Stamford, Conn.
Suffering because of the rise in competitors such as Whole Foods, the chain tried to put itself up for sale but was unable to find any buyers, media reports say.
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