Fairway Group operates the supermarket chain Fairway Markets, which has 15 stores and four wine shops in New York, Connecticut, and New Jersey.
The company is facing fierce competition from Whole Foods, Trader Joe’s, and others, according to analysts.
“Without the capital to effectively conduct promotional and marketing activities in a highly competitive market, Fairway’s top-line growth will prove elusive, and cash flows, liquidity and profitability will remain strained,” the Moody’s analyst Mickey Chadha wrote in a note in November.
The company’s CEO, Abel Porter, told Bloomberg in November that Fairway had the cash to compete.
“We’ve moved dramatically quickly to be able to compete,” Porter said. “We’re not burning cash; we’re accumulating cash.”