Fairway Chain May Face Bankruptcy
NEW YORK, NY - With its April deadline quickly approaching, Fairway Market could face bankruptcy if it does not increase its cashflow.
“Our current limited cash resources and significant leverage will adversely affect our ability to open new stores,” the company said, according to the New York Post.
Fairway says its main plan to raise funds is by opening new locations. The report also states that the company has had a series of “significant losses,” a total of more than $300 million over the past five years and $35.7 million just in the most recent quarter ended December 27th. For this reason, the report expects the company to have a hard time meeting certain debt obligations.
Among its list of struggles, Fairway says the company's biggest competitors have “more experience operating multiple store locations or have greater financial or marketing resources,” the report shares. Namely, the competitors included were Whole Foods, Trader Joe’s, and Stop & Shop.
If the company does end up choosing to file for bankruptcy, Fairway may find it difficult to find buyers in the current market. A&P, who also recently liquidated the last of its stores and assets, had notable issues in selling its over 100 locations withing the region.
“The question is whether there is a turnaround in the future of this company,” David Tawil, President of Maglan Capital, told the New York Post. “There is not a big pool of potential buyers as we saw with the A&P bankruptcy.”
AndNowUKnow will continue to follow the situation as further details unfold.