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Old 02-19-2016, 02:39 PM
 
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After the A&P bankruptcy, is another supermarket chain about to collapse?

http://www.crainsnewyork.com/article...alert-20160219
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Old 02-19-2016, 02:47 PM
 
Location: Eric Forman's basement
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A shame. I like the store they opened on Second Avenue in the 30s.

The same old sad story: A company is bought by investors for far more than it's worth, and the debt gets loaded on. Somehow the original investors seem to make out okay! Funny how that happens.
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Old 02-19-2016, 03:44 PM
 
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Fairway has lost its way..... In going public they seem to have forgotten or whatever the very things that made them great from start. Worst places like Fresh Direct, Whole Foods, Trader Joe's, and now Wegman's (Brooklyn only but who knows in future) are all in competition for the same market demographic.


DAG isn't doing very well either:


https://commercialobserver.com/2016/...-in-manhattan/
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Old 02-19-2016, 03:58 PM
 
Location: West Harlem
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Quote:
Originally Posted by macnyc2003 View Post
A shame. I like the store they opened on Second Avenue in the 30s.

The same old sad story: A company is bought by investors for far more than it's worth, and the debt gets loaded on. Somehow the original investors seem to make out okay! Funny how that happens.
Nothing "funny" about it in either sense of the word here. Welcome to the predatory economy of your current world.
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Old 02-19-2016, 04:19 PM
 
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Originally Posted by Harlem resident View Post
Nothing "funny" about it in either sense of the word here. Welcome to the predatory economy of your current world.

No one forced the "Fairway family" to go public; they went to Wall Street same as many others do, to raise capital and get themselves and investors a big paycheck.


Fairway IPO: Everything You Need to Know - Deal Journal - WSJ


https://en.wikipedia.org/wiki/Fairway_Market

As per normal when a company expands rapidly often the things that made them great as a small venture are lost. Again worse for Fairway is the rapid expansion of Whole Foods, Fresh Direct, and so forth.
New York Grocer Fairway on the Brink of Default as Losses Mount - Bloomberg Business


All this coming as the supermarket industry including gourmet sector are under great stress and experiencing rapid changes as demographics and other forces come to bear.
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Old 02-19-2016, 04:20 PM
 
Location: West Harlem
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Originally Posted by BugsyPal View Post
No one forced the "Fairway family" to go public; they went to Wall Street same as many others do, to raise capital and get themselves and investors a big paycheck.

Of course - that's how it works. Extraction of maximum capital as chief investment goal.
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Old 02-19-2016, 04:38 PM
 
23,423 posts, read 16,124,742 times
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Originally Posted by Harlem resident View Post
Of course - that's how it works. Extraction of maximum capital as chief investment goal.
You cannot extract something unless given consent to mine/relive current owner of said property or value. Once again Fairway did not need to go public nor did they *have* to launch a rapid expansion plan that included going national. The family wanted to run with the big dogs and that is all there is to the matter.


People like to blame Wall Street for IPO woes, but it takes two to tango. Persons who own businesses are just as dazzled by the prospect of a windfall from a public offering as anyone else. The technology sector is littered with concerns that reaped huge valuations (and payouts) for owners and initial investors but now are worth junk, if they are still around at all.


Over 60% of Fairway's sales come from sales from produce, organic items and prepared foods. You can find those same products all over Manhattan and elsewhere from TJ's, WF's etc..... That right there should have been a warning sign.
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Old 02-19-2016, 04:44 PM
 
Location: West Harlem
6,885 posts, read 8,624,297 times
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Quote:
Originally Posted by BugsyPal View Post
You cannot extract something unless given consent to mine/relive current owner of said property or value. Once again Fairway did not need to go public nor did they *have* to launch a rapid expansion plan that included going national. The family wanted to run with the big dogs and that is all there is to the matter.


People like to blame Wall Street for IPO woes, but it takes two to tango. Persons who own businesses are just as dazzled by the prospect of a windfall from a public offering as anyone else. The technology sector is littered with concerns that reaped huge valuations (and payouts) for owners and initial investors but now are worth junk, if they are still around at all.


Over 60% of Fairway's sales come from sales from produce, organic items and prepared foods. You can find those same products all over Manhattan and elsewhere from TJ's, WF's etc..... That right there should have been a warning sign.
It's not Wall Street, except that it might have propagated the tendency.

Of course they did not "need" to go public. "Predatory" as regards economies merely indicates extracting value - as primary goal - rather than building something, whether equity, a business, what-have-you. My students would call this a "mindset." It isn't simply a top-down thing.

In higher ed this "plan" manifests as cash hoarding by administrations. No reinvestment, especially not in faculty. Instead, hire cheaper (and unqualified - but who cares).

Avoid those schools, by the way. An early indication is too much and too powerful administration.
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Old 02-19-2016, 04:56 PM
 
1,015 posts, read 822,366 times
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The American supermarket as a concept is bankrupt. Shelves are largely overstocked because of the supposed psychological benefit of having people purchase more. The result is massive amounts of fresh produce getting discarded or rotting on the shelf, meanwhile over 30 million americans are practically starving. Time to rethink this. Problem is that the american supermarket is what won america the cold war. America was like; "forget social equality or anti-colonialism that those god damn russians are pushing look at us! We have 40 varieties of apples on our shelves. Life is fare better in a country where you have 40 varieties of apples on your shelf rather than maybe 1"
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Old 02-19-2016, 10:33 PM
 
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I knew when they added the 3 stores in Manhattan (East 30's, West 20, and UES)they would be in trouble.
I usually go to the one on the UWS and West 25th street and both always have really long lines. I really only like the one on the UWS though.
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