As Red Hook Workers Fret Over Fairway Fate, Residents Say Grocer Priced Poor Out

Fairway Market in Red Hook. Liena Zagare/Bklyner

By Claudia Irizarry Aponte, THE CITY.

The Fairway grocery chain’s bankruptcy filing Thursday revealed plans to sell its five Manhattan stores to a new owner — leaving the future of its other nine outlets in limbo.

The news hit especially hard in Red Hook, where for 14 years Fairway has operated a large store and cafe on the waterfront. On Thursday afternoon, managers told the workforce that the Brooklyn outpost may close in the next four to six months, according to a longtime employee.

Workers were called in to meet with bosses in groups of 10, the employee said. “I’m trying not to think about it too much, I’m still processing this,” the worker, who did not want to be identified out of concern about his losing his job.

The Red Hook Fairway opened in 2006 on Van Brunt Street to fanfare — and hopes it would employ area residents and revitalize the geographically isolated neighborhood, where it remains the only major supermarket.

But some locals say the store became too pricey for Red Hook residents with limited means, and helped spur ongoing gentrification.

The future of the private equity-owned company’s roughly 3,000 employees, most of whom belong to United Food and Commercials Local 1500, remains unclear. Bankruptcy filings show the company’s pension fund is not on track to have enough money to pay all the benefits owed into the future.

This isn’t the first time Fairway filed for bankruptcy. In 2016, the company reorganized its debt, sparing employees most of the negative impact.

Fairway, Local 1500 and Red Hook landlord Greg O’Connell — whose quest to bring Fairway to the neighborhood helped usher in a wave of trendy shops and restaurants into the once heavily industrial area — did not respond to requests for comment.

Early Days of ‘Lowest Prices’

Bankruptcy filings show rent of nearly $172,000 for Fairway’s space on the ground floor of O’Connell’s historic warehouse building at the end of Van Brunt Street, with two adjoining parking lots.

The 52,000 square-foot complex, along with its café, made-from-scratch bakery, sushi bar and catering business, became the company’s largest store when it opened in 2006.

First, it had to survive a lawsuit from neighbors — and the resignation and imprisonment of the local City Council member who controlled approval of the project, Angel Rodriguez, following an extortion conviction.

The Red Hook Fairway, with its own New York Water Taxi stop, quickly emerged as a destination for shoppers — many of them from outside the neighborhood — seeking specialty items and high quality, yet affordable groceries.

At the same time, the founding family that then owned Fairway made it a point to serve Red Hook as both a retailer and employer.

Inside the Fairway in Red Hook, Brooklyn, on Jan. 23, 2020.
Inside the Fairway in Red Hook, Brooklyn, on Jan. 23, 2020. Photo: Claudia Irizarry Aponte/THE CITY

“We always make sure to have the lowest prices,” co-owner Howard Glickberg told the Daily News in 2006. Glickberg and his family also vowed to hire neighborhood residents for a variety of entry-level union jobs, 375 in all, The New York Times reported.

Locals Take Closing in Stride

Residents who live in the nearby Red Hook Houses say the market gradually betrayed its ties to local low-income shoppers.

Lisa Gonzalez noted that prices at the grocery store started climbing after Hurricane Sandy devastated the neighborhood in 2012. After the storm, a Fine Fare supermarket near Wolcott Street closed, and other Red Hook markets started disappearing, too.

“When I first moved here, it was a lot better,” said Gonzalez, who has lived in the Red Hook Houses since 2005. “But they racked up the prices after Sandy. People can’t shop there anymore.”

Gonzalez still goes to Fairway for specialty items, but takes the B61 bus to a C-Town in Park Slope for her regular shopping. The one in her neighborhood, she said, is of inferior quality.

Nahisha McCoy, another Red Hook Houses resident, said she wasn’t concerned about the possibility of Fairway closing.

“It doesn’t bother me one way or the other because I can’t afford to shop there,” she said.

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Comments

  1. I was regularly shop in this particular store in Red Hood. It’s was the best store ! Very upset with this news! I’m leaving at Bayview and shop always in this store, Whole Food and Wegmans. Every store have their own policy but Fairway always have the best sale! Customer service and every sales person in Fairway the best! It’s big lost for my family! Quality and prices in Fairway nobody can beat!

  2. Many of us are sick about the closing of Fairway. The Redhook fairway was amazing. Prices were right on for shoppers. There is no single store that carried so many speciality items. It really took us by shock to see this happen. This was an event to come here weekly. Sitting outside and snacking was amazing. Also, to be noted the employees of this store were the best.

    I would like to say that private equity companies should be outlawed. They are everything that is bad about capitalism and encourage greed over the needs of a community. The owners of fairway got caught up in the thinking that this equity company would expand the dreams and vision of Fairway. Instead they ran it into the ground. According to Crains, they did not loose anything for their investment.

    We are sad to see Fairway go, and hopeing that someone will be brave enough to take over the store and continue to provide New Yorkers with an amazing array of food.

  3. It is very sad that Fairway is closing. For many reasons. Local folks I know may find it expensive, but I see many students from our programs working there so it does provide decent, union jobs. I also shop on a tight budget and if you know how to navigate the store you can find affordable choices. I run a non profit housed in the Fairway building. We have gone through the devastation of Sandy with Fairway employees and cried with joy upon their return. I am so hoping they can find employment. We will miss our Fairway friends so much. Fairway has been a big supporter of events we produce for free for local residents. Such as the annual Red Hook Fest opening night community cook out. It has been a big boon to local businesses which in turn support local nonprofits which provide services to the community.
    It was a great vision for a business that would benefit all Red Hook residents and businesses when the O’Connell’s chose Fairway to occupy their warehouse on Van Brunt. The problem came when it was sold to a hedge fund group who only cared about profit and expanded unwisely.
    The community needs a good grocery store that draws local residents and shoppers from other neighborhoods. Affordable options, healthy food, high end items can exist side by side. People will more and more shop with eye toward social responsibility and environmental consciousness.
    I hope some business with a vision that good business and social responsibility go hand in hand will take over.

  4. I too am angry and blame “Vulture Capitalists.” Everything they made off the deal should be taken from them and thrown into the bankruptcy. There is no way that unethical financial trickery like this should be rewarded. First, they inflate the stock price by “lowering costs.” Then they expand far too quickly with too many stores opening at once. Then when the stock price is at an all time high, they sell off, leaving the suckers holding the bag….it’s like the momentum which propels Wiley Coyote off the cliff before he realizes there is nothing holding him up. May they rot in Hell!!!

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