The New York Post reports that Fairway Market, having emerged from bankruptcy last year, now "is now looking to sell its ginormous Bronx warehouse" as part of a broader restructuring.
The Post writes that Fairway, owned by Blackstone Group’s GSO Capital Partners, "has been unable to jump-start the business since its July bankruptcy exit — in part due to the increasingly competitive environment from rivals like Amazon, FreshDirect, Trader Joe’s and Whole Foods. The retailer will face a cash crunch later this year and is looking to trim bloated operational costs, according to industry experts familiar with the situation."
Fairway strikes me as just a classic example of what happens when a retailing entity is controlled by a Wall Street-oriented investment group that seems to know little if anything about Main Street.
When the longtime family-owned company went public in 2013 - an IPO engineered by Sterling Investment Partners - the money guys were talking about having 300+ stores far beyond the company's New York metro area home market and 15 existing stores, and it built the $20 million distribution facility in the Bronx in 2015. But since that time, Fairway has been traveling what the great Bob Murphy used to call "nine miles of bad road," with losses and decreasing market share amid increased competition.
They're getting to the point where the real estate may end up being worth more than the stores, and perhaps where it will make sense for somebody to come in a pick up the company for a song.