Fairway Market sells store leases; Amazon among the buyers
Fairway Market’s plans to sell all its 14 stores is proceeding on track.
The iconic, 87-year-old New York grocer, which filed for bankruptcy in January, awarded bids for two store leases in New Jersey to Amazon, six locations in New York City to ShopRite operator Village Super Market Inc. and one to Key Food cooperative member Seven Seas Georgetowne LLC in a court-supervised auction.
Amazon's winning bid is for Fairway store leases in Paramus and Woodland Park (New Jersey) for $1.5 million. Village Super Market’s winning bid includes four of Fairway's Manhattan stores as well as the grocer’s production and distribution center for a purchase price of approximately $76 million. Seven Seas won Fairway’s Georgetown store in Brooklyn, N.Y., with a $5 million bid.
Fairway continues to operate all its stores, including those not sold during the Court-supervised auction. The grocer said it intends to do so for the foreseeable future to accommodate the current public need product.
"We are pleased with the outcome of the auction and are grateful for our dedicated and hard-working employees, suppliers and distributors during this process which has taken place in these unprecedented times," said Abel Porter, CEO at Fairway Market. "Serving our community has always been our top priority and we remain committed to providing quality items and a safe shopping environment for our customers and our employees during this global health crisis."
Fairway Market's legal counsel is Weil, Gotshal & Manges, LLP, its M&A investment banker is PJ Solomon and its financial advisor is Mackinac Partners. The Ad Hoc Group of senior lenders is represented by King & Spalding, LLP.