Fairway Market files for bankruptcy and plans to sell its stores

• Fairway Market said Thursday it has filed for bankruptcy protection and entered an agreement to sell its distribution center and five Manhattan stores to Village Super Market.
• The grocery chain said it plans to sell its remaining 13 stores in a court-supervised process.
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Fairway Market has filed for Chapter 11 bankruptcy protection, the company said Thursday.

The New York-based grocery chain said it entered an agreement to sell its five Manhattan stores and distribution center to Village Super Market, which operates ShopRite and Gourmet Garage stores. Village Super Market is offering about $70 million for the assets.

Fairway said it plans to sell its remaining stores in a court-supervised process.

The company has 18 stores in New York, New Jersey, and Connecticut, according to its website.

All of its stores will remain open during the bankruptcy process, the company said.

"After careful consideration of all alternatives, we have concluded that a court-supervised sale process is the best way to meet our objectives of preserving as many jobs as possible, maximizing value for our stakeholders, and positioning Fairway for long term success under new ownership," Abel Porter, chief executive officer at Fairway Market, said in a press release.