Bankruptcy Judge Michael E. Wiles last week accepted the reorganization plan of Fairway Group Holdings Corp., parent company of Fairway Market of New York City.
Fairway is expected to emerge from bankruptcy during the week of June 20, with approximately $50 million in cash, a substantial reduction of its debt by $140 million and a reduction of Fairway’s annual debt service obligations by up to $8 million.
In accordance with the plan, all pre-petition unsecured creditors, including suppliers, employees, unions and other trade creditors, were not impaired and were and will continue to be paid in the ordinary course of business.
Fairway CEO Jack Murphy noted, “We will emerge from bankruptcy with a stronger balance sheet, $50 million in cash and the backing and commitment from the senior lenders and new shareholders to reinvest in the future of Fairway. We will continue to provide to our customers the best food experience in the greater New York area, and we pride ourselves on continuously improving our product offering while maintaining the freshness and quality our loyal customers have come to expect.”
In addition, Fairway is on target to open a new Fairway store in Georgetown, Brooklyn, in late 2016.
Fairway, with a tagline of “Like No Other Market,” has 15 stores in New York, New Jersey and Connecticut. The stores emphasize an extensive selection of fresh, natural and organic products, prepared foods and hard-to-find specialty and gourmet offerings, along with a full assortment of conventional groceries.