NEW YORK, NY - While Fairway Market struggles to get back on track financially, the company has had more weight added to the pressure. Nasdaq has delivered the chain’s parent, Fairway Group Holdings Corp., with a second notice of delisting, this time for failure to satisfy a continued listing rule or standard.

As we previously reported, Fairway recognized that it could face bankruptcy in the coming months, lacking the funds to open the new stores it planned to help facilitate a turnaround.

“Our current limited cash resources and significant leverage will adversely affect our ability to open new stores,” the company said, according to the New York Post, earlier this month.

Now, a Form 8-K filed by Fairway Group Holdings Corp. with the SEC reveals that the Listing Qualifications Department of The Nasdaq Stock Market has threatened to delist the company for failure to deliver the minimum market value of publicly held shares of $15,000,000 for 30 consecutive business days.

The form does not have any immediate effect on Fairway’s Class A listing with Nasdaq, however, they have 180 days (until August 9, 2016) to deliver that market minimum.

This caution from Nasdaq is separate from another notice the retailer received in early January regarding the bid price requirement, which it must comply with by July 5, 2016 or its Class A common stock will be subject to delisting.

According to the filing, if the chain does close at $15,000,000 or more for a minimum of ten consecutive business days at any time during this 180-day period, Nasdaq will provide written confirmation to the company that it has regained compliance.

If it is not in compliance with this latest notice by August 9, the company will receive a written notice from Nasdaq that its Class A common stock is subject to delisting.

Fairway stated that it intends to monitor its market value of publicly held shares of its Class A common stock between now and August 9, 2016.

While it does intend to consider all available options, the filing said that the company can not provide assurance that it will be able to regain compliance with the Nasdaq minimum value of publicly held shares requirement or maintain compliance with Nasdaq’s other listing requirements, including the bid price requirement.

AndNowUKnow will continue to follow this story as it develops further.

Fairway Market