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• Fairway Markets said yesterday that Howard Glickberg - grandson of the company's founder, longtime CEO and most recently Fairway's Vice Chairman of Real Estate Development - is retiring from the company, though he will remain on the board of directors.

Fairway, which now has 15 stores in the New York metropolitan area, was sold in 2013 by the Glickberg family to Sterling Investment Partners, a private equity group.
KC's View:
Forgive me, but I actually was sort of surprised that anyone from the Glickberg family was still involved with Fairway, which seems to have hit a series of New York-sized competitive potholes since the sale to Sterling. In fact, I was reading a piece in the other day suggesting that the speculation in the financial community is that Fairway's best bet is a takeover by another retail chain. And let's face it … private equity groups generally are in the business of buying and selling, not keeping and growing.

The Institutional Investor piece also pointed out that Fairway is suffering from strong competition, financial demands that are out of whack because of too-high executive compensation, and higher costs related to rent and high product costs. All of which points toward a business model increasingly untenable.

Maybe Glickberg - who was running real estate development at a time when Fairway had put its expansion plans on hold - is getting out while the getting is good.