Fairway Market, 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, WSJ Pro Bankruptcy reported. Village Super Market, 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 said yesterday. “If we are successful in our bid, we are committed to keeping Fairway, including its name, unique product selection and value, a part of this community,” said Robert Sumas, Chief Executive of Village Super Market. Fairway has struggled to stay afloat under heavy competition from other grocery stores at a time when brick-and-mortar retail is being squeezed by online shopping. In court filings, the company also blamed high labor and pension costs for some of its financial straits. The company’s cash dwindled to $1 million by the time it filed for bankruptcy this morning, according to court papers.
