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Fairway facing danger of possible bankruptcy

Fairway

By Lisa Fickenscher

February 5, 2016 | 10:43pm

Fairway Market is starved for cash.

The quintessential New York grocery chain said Friday it needs to raise more capital by April to meet its debt obligations with its 15 stores in the metro area experiencing “significant losses.”

The company — whose stock is also in danger of being delisted from the Nasdaq — lost $35.7 million in the quarter ended Dec. 27 after losing more than $300 million over the past five years.

Revenue declined by 7 percent to $191.6 million from a year earlier, a regulatory filing revealed on Friday.

Fairway is counting on new stores to drive its growth, but conceded in the filing that “our current limited cash resources and significant leverage will adversely affect our ability to open new stores.”

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The company went public in 2013 after decades of being owned and managed by the Glickberg family. Former CEO Howard Glickberg remains on the board.

The IPO was meant to jump-start an ambitious expansion plan led by Sterling Investment Partners, which wanted to expand into other regions of the country. Instead, the business, known for its fresh produce and high-quality prepared foods, is facing a possible bankruptcy.

https://nypost.com/2016/02/05/fairway-facing-danger-of-possible-bankruptcy/

 

https://nypost.com/2016/02/05/fairway-facing-danger-of-possible-bankruptcy/

6 thoughts on “Fairway facing danger of possible bankruptcy

  1. Very highly overrated market!

  2. It’s definitely the best of our area supermarkets in terms of quality produce AND good prices. It certainly looks like they expanded far too quickly.

  3. Too far away and horribly crowded parking lot.

    The three supermarkets here all have non packaged carrots with the green stems. You don’t have to drive to Fairway.

  4. They used to have good deals, but not anymore. Still love their bread and cheese.

    The people who work there work very hard.

    They have the best cashiers. Stop and Shop should learn from them.

  5. It was quick growth plus the investors sucking off profits to build new stores. Hopefully they can recover and get back to their core mission.

    The quality of the products is good but not as good as it was when it opened. Some items have been dropped and it seems like the upkeep isnt quite what it should be. Still they have so many products that the other supermarkets just dont have. I hope it survives.

  6. The butcher section is gross.

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