Save a lot with license renewal offers
Save A Lot has sold its 51 corporate stores in the Tampa, Florida market to Fresh Encounter, a current Save A Lot Retail Partner licensee, as the grocer continues to convert its corporate stores into local operations.
The sale is part of an ongoing license renewal program whereby Save A Lot intends to transition to a wholesale model by selling over 300 company-operated locations to retail partners. new and existing stores that will continue to operate the stores under the Save A Lot program. banner including Fresh encounter.
“We are delighted to extend our partnership with Michael Needler and the Fresh Encounter team, who have been fantastic partners, strong operators and excellent ambassadors for the Save A Lot brand,” said Kenneth McGrath, CEO of Save To Lot. “TWith the license renewal transactions that we execute on our footprint, we believe we will be even better positioned to continue to serve the communities in which we operate. We currently have a dedicated group of business partners that we support and we look forward to helping other entrepreneurs own, operate and be successful in their own businesses.
To date, Save A Lot has executed seven sales transactions, comprising 82 stores, including those sold to independent retailer Fresh Encounter. With several sales transactions nearing completion, the company plans to complete its license renewal program in 2021.
As a licensor and wholesale partner of over 200 independent owners and operators, Save A Lot gives them the flexibility to customize their assortment to meet the tastes and preferences of their local customers.
“The Fresh Encounter family of companies has a culture that prioritizes being positive, appreciative and resilient and we look forward to on-boarding new Florida associates. Over the past few months, I have visited the stores in the Greater Tampa Market and am impressed with the Save A Lot team, ”said Michael Needler, Jr. President and CEO of Findlay-based Fresh Encounter. , Ohio. “I am truly honored to join them in delighting our customers, nurturing communities and inspiring team pride. Kenneth and Kevin Proctor and the rest of the Save A Lot corporate team are transformers and we also look forward to joining their efforts to re-establish the Save A Lot brand for the competitive environment of tomorrow.
Fresh Encounter operates stores in Ohio, Kentucky and eastern Indiana under various banners including Great Scot, Community Markets, Germantown Fresh Market, Needler’s Fresh Market, Remke Markets, Sack n ‘Save, King Saver and Chief Supermarkets.
PJ Solomon served as financial advisor and Troutman Pepper acted as legal advisor to Save A Lot on the Fresh Encounter transaction.
Earlier this year, Save A Lot had made efforts to consolidate its finances by reaching a deal with a large majority of its lenders to recapitalize the company and reduce its debt. He signed an agreement to secure a capital injection of $ 350 million into new capital from a combination of new and existing lenders to support the operations of the discount grocery chain and accelerate its transformation plan.
In addition, Citizens Commercial Banking was the main left-wing arranger on a Revolver based on $ 150 million assets for Moran Foods LLC, based in St. Ann, Missouri, which owns and operates Save A Lot.
“We were able to provide a great solution for Save A Lot, which gave them a more flexible capital structure,” said Jaime Ward, retail finance manager at Providence, Rhode Island, Citizens.
During this time, the grocer will continue to operate 21 corporate stores locally in St. Louis.
Save a lot has more than 1,000 stores in 33 states and 14 wholesale distribution centers. The St. Louis-based company is No. 54 on the PG 100, Progressive Grocerythe list of leading food and consumable retailers in North America.