Fairway Agrees To Bankruptcy Plan

Across the tri-state area there are 15 Fairway Markets, including this one on the Upper East Side of Manhattan.

NEW YORK CITY—Fairway Group Holdings Corp.—the parent company of Fairway Market—has reached an agreement with its senior secured lenders holding more than 70% of the company’s senior secured debt on the terms of a reorganization that will eliminate approximately $140 million of senior secured debt and provide financing to restructure the company’s balance sheet.

To implement the restructuring, Fairway Group Holdings Corp and its Fairway subsidiary have filed a joint prepackaged chapter 11 plan of reorganization and filed voluntary petitions for protection under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. The company intends to use the Chapter 11 process to facilitate a financial restructuring designed to restore Fairway to long-term financial health while continuing to operate in the normal course of business without interruption.