Fairway Market Announces Plans To Go Public
Fairway Market, the popular New York metro area supermarket, currently has 12 locations, and there are plans to open a new store in Chelsea, and another in Nanuet, NY over the summer, and in the fall, respectively. Fairway announced that it is going public, which the company has been putting off since September when it was delayed because of Hurricane Sandy. Fairway stock is expected to range in price between $10 and $12 per share, and is predicted to rise as much as $164 million.
The company plans on using the proceeds from the IPO to open new stores and for other business purposes.
The retailer, with the slogan “like no other market,” opened in the 1930s as a small market. In 2007, Sterling Investment Partners bought 80% of the company, and they will continue to control the company after the IPO.
Fairway offers a wide variety of groceries, mixing natural, organic, and gourmet items, with typical grocery items like laundry detergent and toilet paper. Because of the breadth of products offered, the company has the ability to reach a very wide audience.
The company reported yearly revenue of $554.9 million in the fiscal year ending on April 1, 2012, up 14% from the year earlier. However, it showed a loss of $36.7 million last year, due to opening up of new stores. It is common for companies to be unprofitable before going public.