A month after filing for bankruptcy, Fairway is getting ready to close one of its stores.
Newsday reports, "At the entrance of the Lake Grove Fairway supermarket on Friday two signs stated: 'Store closing. Everything must go.' A manager at the store referred media inquiries to the corporate office, but did say that July 15 is the tentative closing date."
The store opened on July 23, 2014:
— Fairway Market (@FairwayMarket) July 23, 2014
Two weeks ago, a bankruptcy court judge approved the grocery chain's plans for restructuring. The plan promises that all 4,000 employees will keep their jobs, and the company agreed that it would not change its current collective-bargaining agreements with the union. A press release proclaimed, "Fairway is expected to emerge from bankruptcy during the week of June 20th, 2016 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."
CEO Jack Murphy said, "Thank you to all the customer who had continued to support Fairway. Our stores are open and stronger than ever."
The release also noted that a second Brooklyn store, replacing the Waldbaum's at the Georgetown Shopping Center in Bergen Beach, was still on track to open later this year. We've contacted Fairway for comment.
Some of the analysis of "what went wrong" with Fairway was that the investment firm that brought the company to IPO had no experience with grocery stores and it was also expanding at a time when Whole Foods and Trader Joe's, which have even bigger networks, are making a play for the same customers.
There are currently 15 Fairway locations, including seven in NYC.