Fairway Group Holdings (FWM) on a Wild Ride

Stephen L Kanaval  |

Fairway Group Holdings (FWM), the fresh, organic, and specialty grocery company, has experienced volatile trading as of late. Just this week, the stock jumped 27.94% on Friday and fell 19.54% on Thursday. The New York-based company has experienced unusually high volume this week and is trading at a 52-week moving average of $0.41.

The competitive grocery market and declining sales are hanging over the grocery chain. On February 5th, the company issued a warning to shareholders that it could default on its loans agreements, but reports of it being able to find investors to raise the cash have popped up over the last couple of weeks. Without the influx of cash, most analysts believe the company would default by April 3rd, 2016. With $266 million in accrued debt, the company’s 15 stores across the states of New York New Jersey, and Connecticut could be in trouble.


The main problem is finding suitable investors for the cash infusion are the high rent at the company property locations. Competing against the likes of Whole Foods and Trader Joe's has not been easy to do marketing-wise either. The first store in Manhattan was simply a street fruit and vegetable grocery in the 1930s, and if Fairway cannot keep pace with its competitors than it may be sold in for parts on those same corners.

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Companies

Symbol Name Price Change % Volume
FWM Fairway Group Holdings Corp. n/a n/a n/a 0

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