Nobody is immune to the risk of bankruptcy. Stores and household names can last for a long time but if the market changes, it can be hard to weather it on reputation alone. New York’s own Fairway Market finds itself in this situation.
As reported in the Wall Street Journal, Fairway Market will be preparing to file bankruptcy. From its 1930’s origins as a fruit-and-vegetable stand on Manhattan’s Upper West Side, it has grown into a well-known local chain that, after going public eighty years later in 2013, expanded its stores across New York, New Jersey, and Connecticut.
Due to a heavy debt load and competition from other grocery stores and online shopping, the company has struggled. It filed for Chapter 11 protections in 2016, hoping to cut its debt by more than half with a restructuring plan. As the situation has developed, they will be filing for a chapter 11 bankruptcy now. It will give them the opportunity to reorganize, shed leases, and continue business–as opposed to a chapter 7 filing where their only option would be to close their doors for good.
Despite the best efforts, bankruptcy rears its head to one of New York’s neighborhood names. But there is still hope for those patrons dismayed at the news. For many businesses, patron support after bankruptcies can be a lifeline to a prosperous future later down the road. During the process of filing for bankruptcy, however, it may be helpful to any business owner, no matter how well known, to consult with lawyers or firms who can help navigate this trying time.