Catsimatidis considers buying embattled rival grocery chain
John Catsimatidis is still carrying a torch for rival grocer Fairway Market, The Post has learned.
Catsimatidis, who owns Gristedes supermarkets, has had recent informal discussions with Fairway owner GSO Capital Partners about buying the embattled chain, he told The Post.
The 69-year-old exec cautioned that any type of deal is not “imminent.”
“We put out feelers that we had interest before they went bankrupt and after,” Catsimatidis told The Post. “I’ve been in the food business for 50 years and if opportunities come by — especially in the city — we will take a good look at it.”
In May 2016, the billionaire grocer offered to buy Fairway after the 15-store chain filed for Chapter 11 reorganization — but he was rebuffed by a previous ownership group that decided to restructure the money-losing chain instead.
Fairway then emerged from bankruptcy a few months later under the control of GSO Capital.
“We are proud of the positive changes management have implemented at Fairway and are committed to turning around and growing the business,” said Paula Chirhart, a spokeswoman for Blackstone, which owns GSO Capital.
The company went public in 2013 in a bid to become a major regional chain, but it never posted a profitable quarter and was burdened by $280 million in debt earmarked for the expansion.
If Catsimatidis does reach a deal of some sort for Fairway, it wouldn’t be the first time he bailed out a struggling New York grocer.
A year ago, he gave family-owned D’Agostino’s an open line of credit for working capital because the nine-store chain was unable to pay its supplier to put merchandise on this shelves.
The arrangement opens the possibility of a joint venture between Gristedes’ Red Apple Group and D’Agostino, Catsimatides said at the time.
No comments:
Post a Comment