Save A Lot Transforms Operations With $138 Million Investment
ST. LOUIS, MO - Opening up the new decade with transformation seems to be the running theme of most retail news lately. Hitching its train to this wagon, Save A Lot recently announced an agreement with the majority of its lenders so that it might recapitallize the businesss. Under this new agreement, the discount grocer will receive $138 million to strengthen its business and accelerate its transformation plan.
“The agreement with our lenders is an important step in securing Save A Lot’s long-term success,” said Kenneth McGrath, Chief Executive Officer, in a recent press release. “This is a significant statement of confidence in our business and gives us the appropriate levels of capital to compete effectively. We have an amazing group of retail partners and team members who provide Save A Lot shoppers with high quality products at low prices every day. This new investment is an endorsement of their hard work and dedication to our customers.”
The press release noted that this agreement also provides for a reduction of indebtedness of over $400 million, strengthening Save A Lot’s balance sheet and significantly reducing its annual interest expense. Subject to approval, the retailer expects the deal to close in the first quarter of 2020.
Keep reading AndNowUKnow for the latest in retail, strategy, and more.
