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Fairway Group files for bankruptcy protection

Grocery chain operator Fairway, which has lost money in every quarter since it went public in 2013, filed for Chapter 11 bankruptcy protection on Monday in a New York court.

Fairway listed assets in the range of $100 million to $500 million, and liabilities of $100 million to $500 million, according to a court filing

The company has filed for a prepackaged Chapter 11 plan to restructure its debt and is seeking approval for $55 million in debtor in possession credit, it said in a statement.

Fairway, which operates about 15 stores in the New York City area, said it aimed to reduce debt by about $140 million through the restructuring and retain jobs.

The company said it has hired Dennis Stogsdill of turnaround management firm Alvarez & Marsal as chief restructuring officer.

Fairway Market
Adam Jeffery | CNBC

Bloomberg reported last month that Fairway was likely to file for bankruptcy after reaching a deal with its creditors.

Fairway said in February it needed to raise more capital to stay in business over the long term.

The case is in U.S. Bankruptcy Court, Southern District of New York, Case No: 16-11241.