Discount retailer Save-A-Lot is reaching out for a helping hand, if reports from Reuters are correct. News arose this week that the company is considering a sale of all or part of itself as it continues to weather a fiercely competitive grocery market and what Reuters called “a swelling debt load.”
People familiar with the matter, who wish to remain anonymous, reportedly told the news source that Save-A-Lot has hired investment bank PJ Solomon to investigate possible deals. However, if no buyer steps forth, the company will focus instead on mitigating its debt.
According to Reuters, Save-A-Lot has a $728 million term loan due in 2023 and a revolving credit line of $250 million, with investors voicing their concerns regarding this debt in the way of term loans, which as of last Friday, were trading between 50 and 60 cents.
The chain has also struggled to keep its profits up in the last couple of quarters, which is why, when compared to Aldi’s, Lidl’s, and Walmart’s growth in the same quarters, many industry experts believe Save-A-Lot is aiming to come at the retail sector with a new strategy.
This is not the first rocky news that’s come out of Save-A-Lot’s corner this year. The company also laid off 80 members of its corporate staff.
Private equity firm Onex Corp currently owns Save-A-Lot after purchasing the retailer from SuperValu back in 2016.
Will Save-A-Lot be able to find a buyer and pull ahead in this competitive retail landscape? Deli Market News will continue to report.