Subway has sold itself to a private equity firm
Subway has been sold to private equity firm Roark Capital for an undisclosed amount, marking the end of the sandwich chain's six-decade run as a family-owned business.
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Posted 8/24/2023, 11:41:00 AM
cnn.com
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### Summary
Investors await Federal Reserve Chairman Jerome Powell's speech in Jackson Hole, Subway is selling itself to private equity firm Roark Capital, the U.S. Department of Justice sues SpaceX over alleged unfair employment practices, AI startup Hugging Face raises $235 million in funding, and former President Donald Trump surrenders and is booked at the Fulton County jail in Georgia on state charges related to the 2020 presidential election.
Subway, which has experienced a 21.6% decline in foot traffic over the past four years, will face substantial challenges in revitalizing the brand after being acquired by Roark Capital, according to an industry expert.
Subway's $9.6 billion deal with Roark Capital may face antitrust scrutiny due to strict competitive rules outlined in Subway's franchise agreement, potentially causing issues with regulators.
Roark Capital's Neal Aronson faces the challenge of turning around Subway, the sandwich chain that has been struggling with closures and competition, after winning a $9.7 billion bid for the company.