NEW YORK CITY, NY - Fairway Group Holdings Corp officially filed for Chapter 11 bankruptcy in a New York court yesterday, May 2.
The filing comes after consecutive quarterly losses going back since 2013, when the company went public. Now the company stated that it is filing for a prepackaged Chapter 11 plan to restructure debt and seek approval for $55 million in debtor in possession credit, according to a Fortune report.
As we previously reported, signs have been occurring over the last couple of months that the retailer could file for bankruptcy, including several probation warnings from Moody’s.
In a court filing, the company listed assets in the range of $100 million to $500 million, and liabilities of $100 million to $500 million, and has reportedly hired turnaround management firm Alvarez & Marsal’s Dennis Stogsdill as its chief restructuring officer.
Bloomberg has reported that the company’s shares have dropped 94 percent in value in the past 12 months, predicting that the company would file for bankruptcy this month.
Currently the retailer is aiming to reduce its debt by about $140 million, according to Fortune, through restructuring as it looks to retain jobs.
At the end of last year and the start of 2016 the chain had said it planned to boost profit with new stores, currently operating 15 locations in the New York area.
AndNowUKnow will continue to report on this story as more details develop.
