New York, NY—On June 8, Fairway Group Holdings Corp, the parent company of Fairway Market, unanimously won the court’s approval for a Plan of Reorganization.
The plan, which will reduce the company’s debt by $140 million and reduce the annual debt service obligations by up to $8 million, will allow all “prepetition unsecured creditors, including suppliers, employees, unions and other trade creditors to be paid in the ordinary course of business.”
“Thank you to all the customers who have continued to support Fairway,” said Jack Murphy, chief executive officer, in a statement. “Our stores are open and stronger than ever.”
The Plan will also cancel all outstanding common stock and allow senior secured lenders to exchange their loans for common equity of Fairway.
Fairway will emerge from bankruptcy with $50 million in cash on June 20, 2016 and plans to open a new store in Brooklyn, NY in late 2016.
Posted on WholeFoods Magazine Online 6/15/2016