Fairway posts $1 million PACA bond

New York-based Fairway Group Holdings Corp. and its subsidiaries posted $1 million in surety bonds with the U.S. Department of Agriculture to obtain Perishable Agricultural Commodities Act licenses to operate in the produce industry, according to a USDA news release.

Fairway Markets filed for Chapter 11 bankruptcy in May 2016, reporting $279 million in senior debt.

Under the rules of the PACA, companies are required to post bonds if they wish to continue in the produce industry after prior involvement in bankruptcy.

USDA will hold the bonds for three years as a guarantee to the industry the company will be able to pay for purchased produce and comply with the PACA.