In this article, Adam Stein-Sapir of Pioneer Funding, LLC, provides expert insight on the legal dispute involving the Fairway Market bankruptcy.
Article Link: https://nypost.com/2020/08/05/fairways-new-owner-says-ex-owner-trying-to-steal-its-customers/
Summary
Village Super Market, the new owner of Fairway Market, has filed a lawsuit against the former owners, alleging they are using deceptive tactics to divert customers to a new venture, Fresh and Beyond Specialty Grocery. The lawsuit accuses the former owners, linked to Goldman Sachs and led by CEO Abel Porter, of trademark infringement, fraud, and unfair competition by leveraging the Fairway brand and customer data, which were part of the assets sold during Fairway’s bankruptcy proceedings. Despite the sale, the former owners have continued to operate several stores under the Fairway name, causing confusion among consumers. Retail experts and distressed debt specialists, including Adam Stein-Sapir, suggest that the former owners’ actions appear to be an attempt to establish a new business using Fairway’s market presence.
- Village Super Market purchased Fairway’s name and assets for $76.2 million but is now suing the former owners for fraudulent practices.
- The lawsuit claims that the former owners are using the Fairway brand to promote a new grocery startup, causing customer confusion.
- Adam Stein-Sapir comments on the possibility of the former owners reorganizing Fairway assets that have not been sold, including liquor licenses and wine business.
Q&A
What are the implications of trademark infringement in a bankruptcy case?
Trademark infringement in a bankruptcy case can lead to legal disputes over the use of sold assets, potentially complicating the resolution of the bankruptcy and affecting the value of the assets involved. For more information on navigating bankruptcy complexities, visit Pioneer Funding, LLC.
How can selling a bankruptcy claim benefit creditors?
Selling a bankruptcy claim can provide creditors with immediate cash, rather than waiting for potentially lengthy and uncertain bankruptcy proceedings. This can be particularly beneficial in cases where the recovery rate is expected to be low. Learn more about selling bankruptcy claims at Pioneer Funding, LLC’s guide to selling a bankruptcy claim.
What should creditors consider when deciding to sell their bankruptcy claims?
Creditors should consider the potential recovery rate, the duration of bankruptcy proceedings, and their own need for immediate capital. Selling to a trade claim buyer can mitigate the risk of low or delayed recovery. For insights on this decision, refer to Pioneer Funding, LLC’s advice on selling bankruptcy claims.
