Fairway’s Chapter 11 Plan Saving 1,700 Jobs Approved After Sale

New York-area supermarket chain Fairway Group Holdings Corp. won approval of a bankruptcy plan that preserves some 1,700 jobs after sales of 12 stores and related assets yielded about $90 million.

The Chapter 11 plan, approved Thursday by Judge James L. Garrity of the U.S. Bankruptcy Court for the Southern District of New York, creates a trust for general unsecured creditors that will be funded initially with $1.5 million. The trust is the product of a global settlement among Fairway, creditors, and various locals of the United Food and Commercial Workers International Union.

Unsecured creditors will recover up to ...