Panera’s IPO plans on hold

Panera Brands is putting its IPO plans on hold, citing “the deterioration of the market for initial public offerings over the past several months.” CEO Niren Chaudhary said Friday that the company would not extend its investment agreement with USHG Acquisition Corp., a special purpose acquisition company, sponsored by an affiliate of Danny Meyer’s Union Square Hospitality Group.

While the parties have collaborated closely since the initial announcement of the transaction, they have agreed not to extend the agreement, which lapsed June 30. Panera Brands, which includes Panera Bread as well as Caribou Coffee and Einstein Bros. Bagels, will continue to prepare for and evaluate a potential public listing should market conditions improve.

“We have tremendous respect for Danny Meyer, HUGS and its management team and have enjoyed a very collaborative relationship since last Fall,” Chaudhary said in a company press release. “Unfortunately, the deterioration of capital market conditions over the last several months has led to the realization that an IPO may not be imminent, and as a result we felt it was appropriate not to extend our planned partnership. However, we will continue to prepare for and explore an IPO as market conditions improve, and there is no change to our conviction in Panera, which is as strong as ever. It has been a great joy working with Danny and the HUGS team and we wish them the best.”

Panera Brands has nearly 4,000 locations and 110,000 employees across 10 countries.