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Earth Fare and Fairway Markets file for bankruptcy

Earth Fare and Fairway Markets file for bankruptcy

Fairway Markets and Earth Fare recently filed for Chapter 11 bankruptcy protection, and both companies announced that they plan to go out of business.

Fairway Markets, with 14 stores in the New York metropolitan area, reported in late January that it entered into a stalking horse asset-purchase deal to sell up to five New York City stores and its distribution center to Village Super Market, Inc. for $70 million. Springfield, NJ-based Village Super Market owns and operates 30 ShopRite locations in New York, New Jersey, Pennsylvania and Maryland.

Fairway said it will work with the bankruptcy court to try and sell the rest of its stores.

Earth Fare’s filing came earlier this month, shortly after an announcement that the company plans to sell its assets and close all 50 stores. The filing listed both assets and liabilities of $100 million to $500 million.

Earth Fare has stores in 10 states, with more than half in Florida and North Carolina. The store closures are expected to take place by the end of the month.

According the the filing, Oak Hill Partners and an affiliate own more than 74% of Earth Fare.