Fairway Inks Deal with Unions, Advances Bankruptcy Exit

Fairway Group Holdings Corp. reached a global settlement with a group of worker unions and pension funds that it called a “major milestone” for selling off its grocery store locations and emerging from Chapter 11 bankruptcy.

The New York metro area supermarket chain said it would allow a $68.9 million general unsecured claim from a United Food and Commercial Workers pension fund on account of withdrawal liability, and a $728,000 priority claim for owed contributions.

The deal, which Fairway documented in a filing Thursday at the U.S. Bankruptcy Court for the Southern District of New York, allows the company to ...