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.”
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/
