Fairway Markets, the iconic New York City grocery chain, filed for bankruptcy protection with a proposal to sell its Manhattan stores to the Village Super Market Inc., a member of the Wakefern Food Corp. cooperative.
Village Super Market VLGEA, +1.64% , which operates stores under the ShopRite and Gourmet Garage banners, is offering $70 million for Fairway’s five New York supermarkets and its distribution center, Fairway Markets said on Thursday.
Fairway has struggled to stay afloat under its heavy debt load and competition from other grocery stores at a time when bricks-and-mortar retail is being squeezed by online shopping. The company’s cash dwindled to $1 million by the time it filed for bankruptcy this morning, according to court papers.
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