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Fairway Market has completed a $114 million debt financing, according to Sterling Investment Partners. The financing, led by Credit Suisse Securities (USA) LLC and Jefferies Finance LLC, will be used to repay existing bank debt and fund future store expansion. Fairway, which currently operates five upscale supermarkets in the New York metropolitan area, is a portfolio company of Westport, Conn.-based Sterling.
Noting the grocer’s “compelling growth opportunities” because of its stores “appeal to a wide variety of customers,” Charles Santoro, managing partner and co-founder of Sterling and chairman of New York-based Fairway, said: “In the past three years, we have invested heavily to support Fairway’s growth. In partnership with our management partners, including the founding Glickberg family, we have been very focused on improving and scaling operations, building our private label offerings, and investing in technology and logistics to accommodate new store openings.”
Added CEO Howie Glickberg, whose grandfather began the business in the 1930s: “We have a passionate management team with a proven track record. Each one of our key departments is run by ‘food people”’ who share our passion for our products and our customers. We pride ourselves on being ‘Like No Other Market’ by offering unique specialty items and everyday groceries at highly competitive prices.”
The chain has stores at 125th Street and 12th Avenue in Manhattan, the town og Plainview on Long Island, and the Red Hook section of Brooklyn, in addition to a 50,000-square-foot location that opened in Paramus, N.J. this past year. Additional stores are slated for Pelham, N.Y.; Stamford, Conn.; and the Douglaston section of Queens, with more planned.
“Our potential customer base encompasses the broader New York City metropolitan area, including New Jersey and Connecticut, which is the largest food market in the United States and one of the largest in the world,” said Sterling principal Michael Barr. “Our current focus is on building a leading food retail presence in this broader area, but we believe our format ultimately lends itself to a larger multi-regional presence.”