Monday, January 13, 2020

Fairway bankruptcy due to private equity dumb expansion - shades of toys r us

Struggling Fairway Market again prepares bankruptcy filing
January 2, 2020, nypost.com, by Lisa Fickenscher
Known for its quality produce, prepared foods, cheeses and smoked fishes, Fairway is now preparing to seek bankruptcy protection this month after failing to find a buyer for its 14 stores, multiple sources tell The Post...Fairway’s downturn started in 2007 when the Glickberg family sold an 80% stake to private equity firm Sterling Investment for $140 million. Four generations of the family had owned and operated a handful of Fairways in NYC, starting with a fruit-and-vegetable stand that opened in 1933. Fairway quickly fell victim to Sterling’s aggressive expansion plan...which only served to burden the company with a crushing $300 million in debt. Sterling took Fairway public in 2013...Three years later, in May 2016, it filed for Chapter 11 protection after losing money in every quarter of its life as a publicly held company. It was bought out of bankruptcy by an investment arm of Blackstone, GSO Capital, which recently sold its stake. Now owned by lead shareholders Brigade Capital Management and Goldman Sachs Group, Fairway is quietly closing stores



Hey is sterling equity the ny Mets Stirling? If so it figures 

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