Fairway Supermarket Goes Bankrupt

(RTTNews) - Fairway Group Holdings Corp. (FWM), the operator of grocery chain Fairway Market, has filed for chapter 11 bankruptcy protection.

The retailer has been struggling with intense competition from bigger grocery chains like Whole Foods Market Inc. or online retailers that bring it to door step.

The company said it plans to use the Chapter 11 process to facilitate a financial restructuring designed to restore Fairway to long-term financial health while continuing to operate in the normal course of business without interruption.

The company listed liabilities of about $397 million and assets of $346 million in Chapter 11 papers. Fairway has proposed a $55 million bankruptcy loan for re-organization.

For the nine months that ended December 27, 2015, Fairway reported a net loss of $36 million.