Fairway plans to close its stores, including the flagship on Broadway and 74th Street, the New York Post reported. Fairway is getting ready to file for Chapter 7 Bankruptcy protection, which entails stopping all operations, the newspaper reported.
Other chains have been looking at the store, and Shoprite is particularly interested, the report said.
Fairway’s corporate headquarters did not immediately respond to a request for comment. An employee at the 74th Street store said, “we’re not allowed to speak about it, sorry,” and hung up after we asked to talk to a manager.
Update, 9:40 a.m.: Fairway’s owners told NBC that the report is false.
“Such statements are categorically untrue and disappointing. Fairway has been engaged in a strategic process and expects to soon announce a value-maximizing transaction that will provide for the ongoing operations of stores,” the statement continued. “Our lenders remain extremely supportive of our efforts. All 14 stores remain open for business, offering a complete range of high quality, specialty food products, and we look forward to seeing our customers and employees.”
Ian Joskowitz, chief operating officer of the Westside Market chain, had this to say about the closing:
“It’s sad when any NY institution closes, but it was inevitable when the venture capitalists started calling the shots instead of seasoned supermarket professionals, like Howie Glickberg, Steve Jenkins and Peter Romano. It’s unfortunate.”
This is a developing story and we’ll have more later.