Save A Lot said the deal eliminates $500 million in debt and provides $350 million in new capital that will support operations and the acceleration of its restructuring.
“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,” Kenneth McGrath, Save A Lot’s chief executive officer, said in a statement. “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.”
Save a Lot has more than 1,100 corporate and licensed stores in 33 states. It also has 14 wholesale distribution centers. The company remains true to its mission of adding unmatched value to its local communities. Every day. Every way.
The company last month said it would add about 1,000 jobs to meet the surge in demand stemming from the COVID-19 pandemic.
“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,” McGrath commented. “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. 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.”