Struggling grocer Fairway Group Holdings Corp. has reached a tentative deal with creditors to restructure its debt in bankruptcy, Bloomberg News reported on Friday. The deal would likely put the New York-based gourmet grocery chain into chapter 11 proceedings by the end of May. Fairway’s lenders, led by Blackstone Group LP credit arm GSO Capital Partners, would provide a loan enabling it to continue operations while still in court. The specific terms are still being worked out, including the size of the financing package and whether all store lease contracts will be maintained at its less profitable locations. Under the deal, lenders would take over ownership of the business after Fairway completes its debt restructuring. The company, which is being advised by Greenhill & Co., would focus on turning around the chain without closing the majority of its stores. The company also brought on Alvarez & Marsal Inc. to advise on the restructuring plan.
