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    Fairway Files for IPO

    NYC area supermarket seeks to raise $150M

    New York-based Fairway Group Holdings Corp., parent company of Fairway Market, filed for an initial public offering (IPO) on Monday.

    Fairway filed the necessary paperwork with the Securities and Exchange Commission for an IPO of up to $150 million. The price per share was not disclosed. The stock will trade on the NASDAQ under the symbol “FSM.”

    According to Fairway’s filing, its revenue has grown 38.3 percent the past few years due to its expanding chain of stores. Its net sales increased from $401.2 million in fiscal 2010 to $554.9 million in fiscal 2012. At the same time, the supermarket’s expansion negatively impacted the bottom line. Fairway disclosed net losses of $7.1 million, $18.6 million, $11.9 million for fiscal 2010, fiscal 2011 and fiscal 2012, respectively.

    Fairway is known for its hard-to-find specialty and gourmet food offerings, extensive selection of fresh, natural and organic products, prepared foods combined with a full assortment of conventional groceries. Majority-owned by Westport, Conn.-based private equity firm Sterling Investment Partners, Fairway operates 11 locations in the Greater New York City area, including three Fairway Wines & Spirits stores. A new Manhattan specialty food supermarket will open in November.

    Fairway’s filing comes at a time when organic stocks are red hot. Whole Foods Market’s stock reached $100 per share yesterday, a 52-week high, while shares of organic food company Annie's Inc. closed Monday at $46.19 after an IPO of $19 per share in March.
     

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