On June 29, 2017, Moody’s Investors Service downgraded Fairway Group Holdings Corp.’s corporate family and probability of default ratings to Caa2 and Caa2-PD respectively. “Although Fairway emerged from bankruptcy in 2016 with a lower debt burden, it’s operating performance continues to deteriorate as it faces a very difficult operating environment including intense competitive pricing pressure,” Moody’s Vice President Mickey Chadha stated. “With competitive openings in Fairway’s geographic markets expected to continue from the likes of Wegman’s and Whole Foods, improving profitability to a level that can support its capital structure will be very challenging for Fairway,” Chadha further stated. According to Moody’s, the ratings reflect Fairway’s small scale, geographic concentration, very weak credit metrics and the expectation that cash flow and topline growth will continue to be strained. Read more on distressed companies.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.