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Fairway, come and get the Fairway Market: Bloomberg
Posted on Thursday, 19 September 2019 11:31
New York-based Fairway Market is said to be up for sale once again following it change of hands out of bankruptcy less than three years ago, people familiar with the matter told Bloomberg.
According to the sources, Brigade Capital Management and Goldman Sachs have begun an auction process for the retailer - which started out as a fruit and vegetables stall in Manhattan - and have already received interest from potential strategic and financial bidders.
Fairway filed for chapter 11 protection in 2016 after losing money each quarter from 2013.
It later emerged from bankruptcy under the control of the two investors with obligations reduced to USD 84.00 million from USD 300.00 million with another debt overhaul in 2018 with a five-year extension, Bloomberg observed.
However, the news provider also noted Fairway has been struggling in recent months due to increased competition and price cutting with Moody’s Investors Service noting another debt restructuring could be likely.
The company started as a single stand in the 1930s, with founder Nathan Glickberg growing the group with a fuller selection of grocery products in 1954.
In 1974, Glickberg’s grandson Howie took over the family business and expanded Fairway into a small chain of stores across the New York tri-state area.
There are now 19 markets across the state, with chief executive Abel Porter saying he is focused on expanding the produce selection and online sales, adding more services in its locations.
Zephyr, the M&A database published by Bureau van Dijk, shows 528 deals have been announced targeted grocery store operators globally in 2019 to date.
In the largest of these, DeltaFort Beleggingen picked up a 10.3 per cent stake in Koninklijke Ahold Delhaize of the Netherlands for EUR 2.55 billion.
Supermarkets Italiani, Auchan Retail Italia Servizi’s certain activities and Smart & Final Stores, among others, have also been targeted in the year so far.
© Zephus Ltd