Reports: Save-A-Lot Seeking Buyer or Investor
ST. ANN, MO - Save-A-Lot could be putting itself on the auction block if reports from Reuters are correct. This week, news arose that the discount grocer is considering a sale of all or part of itself as it continues to face a competitive grocery market and what Reuters called “a swelling debt load.”
People familiar with the matter, who asked to remain anonymous, told the news source that Save-A-Lot has hired investment bank PJ Solomon to look into possible deals. However, if no buyer steps forth, Save-A-Lot will instead focus on mitigating its debt.
According to the news source, 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.
On top of that, the chain has 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 in the industry believe Save-A-Lot is looking to come at the retail sector with a new strategy.
But this is not the first rocky news that's come out of Save-A-Lot's corner this year. In January, Save-A-Lot 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 successfully find a buyer and pull through in this competitive retail landscape? AndNowUKnow will continue to report.