Accessibility help Skip to navigation Skip to main content Skip to footer

IPOs

Add to myFT

Get instant alerts for this topic

Manage your delivery channels here Remove from myFT

Sandwich maker Jersey Mike’s and retailer Reformation fail to excite IPO investors

Reformation and Jersey Mike’s test market appetite for consumer sector that has faced twin pressures

Danny DeVito, Charlie Morrison, Eli Manning, and Peter Cancro pose in front of the NYSE for Jersey Mike’s IPO, smiling and gesturing to the camera.From left: actor Danny DeVito, Jersey Mike’s chief executive Charlie Morrison, former American football quarterback Eli Manning and Jersey Mike’s founder Peter Cancro at the New York Stock Exchange on Thursday© Bloomberg

current progress 0%

Haley Zimmerman in New York

Publishedyesterday

Updated16:22

Jump to comments section Print this page

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

A pair of IPOs by debt-laden, private equity-backed consumer companies drew tepid investor response on Thursday, as shares of sandwich maker Jersey Mike’s fell 6 per cent and fashion retailer Reformation ended flat.

Both offerings posed a test of the market’s appetite for consumer brands, a category pressured by high inflation and poor consumer sentiment in recent years. The two are the largest companies to go public in their respective sectors since 2023, when restaurant chain Cava and sandal maker Birkenstock both debuted.

Jersey Mike’s priced its shares at $23 and closed Thursday at $21.63 per share, while Reformation held steady at $15.08.Jersey Mike’s chief executive Charlie Morrison told the FT the company debuted “about where we expected”.

“We don’t look at today’s price or 20 minutes ago’s price,” he said. “We’re looking at the long term.”

Jersey Mike’s is among the fastest-growing major restaurant chains, according to market researcher Technomic. The company has grown to become the second-largest sandwich chain in the US, after Subway, on the popularity of its sub-style offerings.

Proceeds from Jersey Mike’s IPO will be used to pay down debt totalling $2.1bn, much of it from Blackstone’s acquisition of it in 2024. Morrison said the company can expand without using its listing proceeds because its stores are almost entirely operated by franchisees who put up the initial investment.

“We don’t need capital to grow this business,” he said.

In its IPO prospectus, Jersey Mike’s set a long-term target of 15,000 stores, split evenly between US and international markets — a fivefold increase from the chain’s current total of 3,300.

Reformation, too, will use most of its IPO proceeds to address debt, according to its filing. The brand, which was bought by private equity firm Permira in 2019, is known for its sustainably manufactured dresses, often spotted on celebrities such as Taylor Swift and Meghan, the Duchess of Sussex.

The brand plans to expand in the UK, Canada and France, countries where it already has a small number of stores. Reformation benefits from a “broad customer base” across age cohorts, chief executive Hali Borenstein told the FT. “Both mom and daughter are shopping this brand,” she added.

Reformation has been profitable every year since 2021, but its net income fell more than 60 per cent to about $12.6mn in 2025, its filing said. It forecast net income of more than $11mn in its quarter ended June 2026.

Borenstein attributed last year’s slowdown to tariffs and costs associated with moving the brand’s distribution centre. This year, Reformation was “getting our margins back to where we believe our healthy levels are”, she added.

The private equity portfolio exits follow a record year for unsold private equity investments as firms held a nearly $4tn backlog in 2025, according to consultancy Bain & Company.

The two floats come during a strong week for consumer brands, as many companies reported rising profits despite persistently high petrol prices and other inflationary pressures.

“We’re seeing great results from the consumer right now,” Morrison said.

More consumer brands are waiting in the wings: Dunkin’ owner Inspire Brands, which is owned by private equity firm Roark Capital, and the parent company of retailer Men’s Wearhouse, have both filed for IPOs this year. Away from the NYSE, fast-fashion giant Shein filed this month for an offering in Hong Kong.

Reuse this content(opens in new window) CommentsJump to comments section

Follow the topics in this article

Add to myFT

Add to myFT

Add to myFT

Add to myFT

Add to myFT

Comments

Close side navigation menu

Search the FTSearch

Subscribe for full access

Read Original at Financial Times →