U.S. food retailer The Fresh Market Holdings Inc has filed to withdraw plans for an initial public offering, months after agreeing to sell a majority stake to Chilean retail group Cencosud.
The Fresh Market did not give a reason for withdrawing its plans, but IPOs have been on ice in the United States as recession fears escalate and the fallout from the Ukraine crisis dries up equity markets.
The Fresh Market, which Apollo Global Management Inc had taken private in 2016 via a $1.36 billion (€1.36 billion) deal, had filed for an IPO in July last year.
Cencosud Deal
In May, Cencosud struck a $676 million (€675.3 million) deal to buy a 67% stake in The Fresh Market, looking to make its first foray into the U.S. market through the deal. Cencosud has also said it could eventually fully take over the business.
“Cencosud has demonstrated that it is a world-class retailer with exceptional margins, and we look forward to sharing best practices across our businesses," Jason Potter, chief executive officer of The Fresh Market, said at the time.
"The Fresh Market has experienced strong financial momentum over the last few years and this partnership with Cencosud will allow the company to further capture market share as we expand our footprint in our core Southeast market and beyond. Our entire team looks forward to the partnership with the Paulmann Family, Matias and the team at Cencosud.”
Besides groceries, The Fresh Market also offers meat, seafood, dairy products, beer and wine.
Founded in 1982, The Fresh Market's headquarters are located in Greensboro, North Carolina. The company operates 160 stores (100% leased) across 22 states, with an average store size of approximately 21,000 square feet. (equivalent to 1,950 sqm).
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