The discount grocer Save A Lot recently completed a comprehensive recapitalization of its business, meaning that it can step forward with an intensive transformation strategy. Part of this strategy involves injecting $350 million in new capital into its operations. As we reported on our sister site, AndNowUKnow, at the beginning of this year, the discount grocer laid the foundation for this recapitalization, announcing a $138 million deal to also similarly accelerate its transformation plan.
“With the completion of this recapitalization, we are moving forward with a substantially stronger financial foundation as we continue serving our customers and executing our transformation plan,” said Kenneth McGrath, Chief Executive Officer. “Our ability to achieve this outcome through a fully consensual and out-of-court agreement is a significant achievement and reflects the confidence of our new owners and lenders in our business model and long-term growth prospects."
Under the terms of the agreement, which was supported unanimously by all constituents, Save A Lot also completed debt-for-equity and debt-for-debt exchanges that eliminated an estimated $500 million in debt, as well as provided the $350 million infusion.
"We thank our vendors and retail partners for their trust and support throughout this process, and we look forward to continuing to work closely with them into the future," continued McGrath in a statement released by the company. “As our nation is impacted by the COVID-19 pandemic, I cannot say enough about the strength and resilience of our retail partners and our team members. These incredible people are on the front lines every day, and we thank them for their unwavering dedication to serving our customers and helping our communities manage through this unprecedented situation,” McGrath concluded. “We understand the critical role our company plays as our communities rely on us now more than ever to provide food and other essential, high-quality products at low prices.”
For the full details on Save A Lot’s transformation plan, click here.
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