Moody's expects the company to breach its financial covenants by April 3
The Fairway supermarket chain is facing possible default due to mounting debt from recent expansions, according to a report by Moody's Investors Services.
Moody's downgraded Fairway Group Acquisition Company's financial condition last week, saying it expects the company "to breach its financial covenants" by the financial quarter ending on April 3.
The New York-based chain has two locations in northern New Jersey -- Paramus and Woodland Park.
Moody's Senior Analyst Mickey Chadha said in a news release that even if the company receives an infusion of funds or relief from its financial obligations, "its current capital structure is unsustainable."
Fairway needs "to scale back" its expansion plans until "the company's debt burden ceases to be a strain on the company's cash flow," according to Moody's
Justin Zaremba may be reached at jzaremba@njadvancemedia.com. Follow him on Twitter @JustinZarembaNJ. Find NJ.com on Facebook.