NEW YORK, Jan. 23, 2020 /PRNewswire/ -- Fairway
Market, together with certain of its affiliates, announced that it
has filed a voluntary petition under Chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the Southern
District of New York to complete
its strategic sale process. The Company has entered into
a stalking horse asset purchase agreement with Village Super
Market, Inc. (NASDAQ: VLGEA) to sell up to 5 New York City Fairway
stores and its Distribution Center for approximately
$70 million. In addition, the Company will execute a
Court supervised sale process to continue to negotiate for the sale
of its remaining store locations. An Ad Hoc Group of the
Company's senior lenders are supportive of the sale process and
have agreed to provide the Company with up to $25 million in debtor in possession
financing.
Fairway Market will continue to conduct business and serve
customers at its stores across the tri-state area and expects no
interruption in service during the Court-supervised process.
Fairway Market stores will continue to offer a complete range of
high quality, specialty food products, and all existing customer
promotional and loyalty programs will stay in place during this
process.
"We would like to extend gratitude to our employees, vendors,
distributors and customers for their support, dedication and
loyalty over the years. It has always been Fairway's priority to
ensure our patrons are provided with the most optimal grocery
experience, with the freshest foods and best quality products, and
our employees feel appreciated," said Abel
Porter, Chief Executive Officer at Fairway Market. "After
careful consideration of all alternatives, we have concluded that a
Court-supervised sale process is the best way to meet our
objectives of preserving as many jobs as possible, maximizing value
for our stakeholders, and positioning Fairway for long term success
under new ownership."
Village Super Market, Inc. operates a chain of supermarkets and
specialty markets in the Northeast under the ShopRite and Gourmet
Garage banners. "Perry and Nick
Sumas opened the first Village Market in 1937, and our
family continues to believe deeply in the importance of
neighborhood grocery stores. We appreciate that Fairway's
loyal customers are concerned about the future, and if we are
successful in our bid, we are committed to keeping Fairway,
including its name, unique product selection and value, a part of
this community," said Robert Sumas,
CEO of Village Super Market, Inc.
Fairway Market is a unique food retailer offering customers a
differentiated one-stop shopping experience as "The Place To Go
Fooding." Fairway has established itself as a leading food retail
destination in the Greater New York
City metropolitan area, recently expanding with the opening
of The Cooking Place in June 2019, a
cooking school that brings the same passion and philosophy about
fooding to its customers. Fairway Market offers 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.
Fairway Market's legal counsel is Weil, Gotshal & Manges,
LLP, its M&A investment banker is PJ Solomon and its financial
advisors are Mackinac Partners.
The Ad Hoc Group of senior lenders are represented by King &
Spalding, LLP.
For more information about Fairway Market's bankruptcy
protection, please visit: www.omniagentsolutions.com/fairway
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SOURCE Fairway Market