With a Fairway in West Harlem, Harlemites are very interested in updates regarding the store. .Struggling grocer Fairway Group Holdings Corp. has reached a tentative deal with creditors to restructure its debt in bankruptcy, according to people familiar with the matter.
The deal would likely put the New York-based grocery chain into Chapter 11 proceedings by the end of May, one of the people said.
Fairway’s lenders, led by Blackstone Group LP credit arm GSO Capital Partners, would provide a loan enabling it continue operations while still in court, said the people, who asked not to be identified because the discussions are private. The specific terms of the deal 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, one of the people said.
Under the plan, Fairway, which is being advised by Greenhill & Co., would focus on turning around the business without closing the majority of its stores, the people said. The company also brought on Alvarez & Marsal Inc. to advise on the restructuring plan, the people said.
Representatives for Fairway, Blackstone, Greenhill and Alvarez & Marsal didn’t immediately respond to phone calls and emails seeking comment.
Fairway began the process of selling the chain this year, but so far it has garnered little interest from prospective buyers, the people said.
Via Crains New York
Become an Harlem World Insider - Sign-Up For Our Newsletter!