New York-based grocery chain Fairway Market said Wednesday morning it has no plans to file for Chapter 7 bankruptcy, following a report that said it was preparing to do so.
“Despite reports, Fairway Market has no intention to file for chapter 7 or liquidate all of its stores,” a spokesman told CNBC in an emailed statement.
“Such statements are categorically untrue and disappointing. Fairway has been engaged in a strategic process and expects to soon announce a value maximizing transaction that will provide for the ongoing operations of stores. Our lenders remain extremely supportive of our efforts. All 14 stores remain open for business, offering a complete range of high quality, specialty food products, and we look forward to seeing our customers and employees.”
The company shared a similar message on Twitter.
The New York Post had reported on Tuesday evening that Fairway was planning, as soon as Wednesday, to announce it would be liquidating its entire fleet of 14 grocery stores in the New York area, including a flagship shop on the Upper West Side at Broadway and West 74th Street.
In 2016, Fairway filed for Chapter 11 bankruptcy protection, but managed to emerge after restructuring its business that same year with new management. Only one store was shuttered at the time.
Fairway went public in 2013. But it was unable to fend off rival grocery chains, as its debt mounted, ultimately pushing the company into bankruptcy three years after its IPO.
As chains such as Whole Foods and Trader Joe’s have spread across the New York area, it has put more pressure on Fairway and other businesses with smaller footprints to compete, especially on services like same-day delivery.
Fairway started on the Upper West Side in the 1930s as a fruit-and-vegetable stand.