Fairway Market in Red Hook via Cindy Day/Flickr
Though they once had ambitious plans to expand beyond New York City, Fairway Group Holdings Corp. is struggling with debt instead, reports Bloomberg Business. The company has incurred massive debt in order to finance its expansion plans and is in danger of default, according to analyst reports, and its “capital structure remains unsustainable.” In addition to putting the brakes on expansion plans, the company has been advised to close some stores outside New York.
Known for quality produce and well-curated private brands, Fairway Market stores are seen as perhaps the most representative of New York City when conversations turn to regional grocery loyalties. The gourmet grocery’s original store at 74th and Broadway on the Upper West Side, with its cramped-and-bustling atmosphere, is a cult favorite for Manhattanites. The 52,000-square-foot Red Hook location in an historic coffee warehouse, opened in 2006, is credited in part with anchoring that neighborhood’s renaissance.