NEW YORK CITY, NY - Village Super Market, owner of the ShopRite chain and member of the Wakefern Food cooperative, recently bid $70 million for five of Fairway Market’s New York supermarkets and one of its distribution centers. Fairway, which has recently come into the newswire due to its financial struggles and bankruptcy filing, has struggled to stay afloat in an increasingly competitive retail market.
“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,” stated Robert Sumas, Chief Executive Officer of Village Super Market.
As The Wall Street Journal reported, court filings from Fairway Market detail that heavy competition coupled with high labor and pension costs severely dwindled the retailer’s cash flow. The news source noted that its lenders agreed to provide a loan of up to $25 million to keep Fairway’s remaining stores running during the bankruptcy.
The company “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,” Fairway said in a statement.
With grocers like Trader Joe’s and Whole Foods moving into the hot New York market, smaller, local retailers are fighting for market share—and square footage.
AndNowUKnow will continue to cover the latest in retail news and report back on the state of New York's grocery sector.
