The operator of Fairway, one of the city's legendary grocery store chains, declares bankruptcy. The company said shoppers won't notice any immediate charges, but what about Fairway's long-term future? NY1's Michael Herzenberg has the story.

A Fairway market on the Upper West Side opened more than 80 years ago as a fruit and vegetable stand.

"I love their produce," one customer said.

It became a Manhattan institution known for its fresh-ground coffee, artisanal breads, prepared foods, and aisles packed with jostling shoppers.

"Coffee, Nova Scotia salmon, good produce, good prices, good people, amiable people," one woman said.

"It has great products. I'm always happy," one customer said.

But Fairway's ambitious expansion into a 15-market chain across the region left it saddled with too much debt, just as it was facing growing competition from Whole Foods, Trader Joes, and Fresh Direct.

Tuesday, Fairway announced it had filed for Chapter 11 bankruptcy protection.

"They've got some hard, hard decisions to make," said Crain's NY Business senior reporter Aaron Elstein.

Fairway says the reorganization will allow it to shed $140 million in debt, and that all 15 stories will continue to operate without affecting customers, workers, or union agreements.

But Elstein says the future might not be so cut and dry.

"I think they have a lot of stores in the suburbs that aren't doing it for them; stores in, West Patterson, say, that aren't carrying their weight," Elstein said.

Elstein says even if the company's footprint shrinks in the short-term, he doesn't see the Manhattan or Brooklyn locations going anywhere anytime soon.

That's relief to those who shop there.

"These are hard financial times for places as well as individuals. I hope they pull it together and survive," said one customer.

But analysts say Fairway still faces long-term challenges in the fiercely competitive grocery business.

"It's a neat place, it's cool, the Upper West Side store is fun," Elstein said. "But, you know, Whole Foods, Trader Joes — they're a lot bigger, they got a lot more muscle, and I think that's Fairway's problem."

Fairway says the bankruptcy filing is still the best hope to ensure its future. The company hopes to emerge from Chapter 11 quickly.