Fairway Owners Fight Collapse with Bankruptcy Deal

After rapid and apparently misguided expansion, the New York grocery store Fairway may finally be reaching the end of its lifelines. Stocks in the store, which went public in 2013, have been falling since CEO Jack Murphy came on in 2014; they now rest at 30-40 cents a share. Nasdaq has twice warned the company that they may be delisted, and over the past 5 years they have accumulated $267 million in debt.

The chains owners have made attempts to sell, but have not been able to come up with buyers. Now, in a last-ditch effort to keep at least the most successful stores open, they are attempting to enter Chapter 11 bankruptcy protection by the end of May and restructure their debt. If the deal goes through, creditors will take over the company temporarily until they (hopefully) reach more solid footing.

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