New York Grocer Chain Garden of Eden Files for Bankruptcy Protection

by San Antonio Attorney

The grocers in New York are going through hard times.

The Big Apple used to be the place of vigorous indie grocery chains.  The local stores such as D’Agostino and Fairway have either caved-in or been bailed out, and most recently another New York store is added on that list.  Garden of Eden, a gourmet marketplace store, has filed for bankruptcy.

In the past few years, the 22-year old business has closed three of its locations in Manhattan.  According to Garden of Eden, there is an unprecedented lack of customers this year.  An all-time low happened this summer as an outrageous slump in sales in the retail industry caused the chain to miss payments to landlords and creditors.

In 2014, the grocery chain was busy with raising millions in order to build more locations.  From 5 stores it became 6, but it quickly shrunk to three.  The downfall of the chain would probably mean that billionaire John Catsimatidis, owner of Gristedes who acquired D’Agostino, can now buy all the premium deli meat and best vegetables he wants.

Fairway Market also filed for bankruptcy protection in May with $279 million in debt.  After two months, the flagship store located in the Upper West Side of Manhattan emerged from bankruptcy.

D’Agnostino, a family owned grocery chain that started in 1932, has struggled for quite some time and was recently saved by John Catsimitidis, the owner of Gristedes chain of small supermarkets.

Filing for bankruptcy is a typical option for individuals and companies that have unmanageable debt.  Aside from Chapter 11, debtors can file for Chapter 7 bankruptcy to eliminate debt.  A San Antonio Chapter 7 Attorney can help determine if it is the right choice for a company or individual’s situation.

 

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