NEW YORK Reuters Southeastern Grocers Inc, the operator of U.S. supermarket chains WinnDixie and Harveys, decided on Thursday to cancel its initial public offering due to a lack of demand at the price range the company was targeting, a person familiar with the matter said.
It is the second time Southeastern Grocers has pulled a planned IPO after it made the same decision in 2014.
Shareholders in Jacksonville, Floridabased Southeastern Grocers had aimed to sell 8.9 million shares on Thursday at a target price range of 1416 per share, which would have earned them up to 142.4 million. Southeastern would not have received proceeds from the IPO.
Southeastern Grocers declined to comment. The source requested anonymity as the decision was not yet public.
Southeastern Grocers was formed in 2012 by private equity firm Lone Star Funds to house the WinnDixie and BILO grocery store brands. The company filed for bankruptcy in 2018, hit by competition from bigger retailers.
Southeastern Grocers and many other grocery corporations have seen a surge in demand from customers buying household items while under COVID19 restrictions. The company said it generated 7.4 billion of net sales for the 40 weeks ended in September last year, up 16.6 from the previous year. Its net income rose to 235 million from a net loss of 93.7 million.
Nevertheless, grocery chains have faced a lukewarm reception from investors.
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