News Briefs

Big Lots has entered into a sale and leaseback agreement with affiliates of Blue Owl Capital for gross proceeds of $318 million.  

The deal, which includes company’s distribution center in Apple Valley, Calif, and 26 owned-store locations. Net of expenses and taxes, Big Lots expects to receive estimated net proceeds of approximately $310 million.

The company plans to use $100 million the sale and leaseback transaction to fully pay down its synthetic lease on the Apple Valley center, with the remainder used to pay down debt on its asset-based lending revolving credit facility. 

In May, Big Lots  said it would suspend its dividend to bolster liquidity on the heels of a much wider-than-expected first-quarter loss , with sales falling 18% as its customers dealt with inflation, lower tax refunds and higher interest rates. 

"We are pleased to have reached a definitive agreement with Blue Owl for the sale and leaseback of our Apple Valley distribution center and the vast majority of our remaining owned stores,” Big Lots CEO Bruce Thorne said in a statement.  “As we discussed on our Q1 earnings call, we are highly focused on ensuring we have plenty of liquidity to get through this period of macroeconomic challenges, and monetizing these assets is a significant step forward in ensuring such liquidity.”

“Blue Owl has been a good partner on our other regional distribution centers, which we sold and leased back in 2020, and we look forward to furthering our relationship through this transaction,”  he continued. 

Headquartered in Columbus, Ohio, Big Lots operates more than 1,420 stores in 48 states.

Claire’s Holdings Inc. has changed its mind.

The tween and teen girls accessories retailer has withdraw its initial public offering application, according to a filing on June 30. Claire’s filed to go public in September 2021, about three years after it emerged from bankruptcy. The placeholder figure was $100 million. 

In the filing last week, the retailer did not say what led to its decision to withdraw, sharing only that “it has decided not to proceed with the offering at this time.” 

Recently, Claire’s has been expanding via partnerships with other retailers, including Macy’s and Walmart, with its products now available in more than 2,500 Walmart stores and in more than 360 Claire's store-in-stores at Walmart locations It also has a presence in grocery chains, including Albertsons, Kroger, Giant Eagle and others.

As of December 2022, there are more than 2,750 Claire’s owned and operated and franchise stores open across North America and Europe, along with 260 Icing doors.

 

Dollar General is adding a finance expert to its board.

The discount retailer announced the appointment of David Rowland to its board of directors, effective August 5, 2023. Rowland is the former executive chairman of Accenture plc.

With Rowland’s election, Dollar General’s board of directors now consists of ten total members. Rowland also will serve on the company’s audit committee of the board of directors.

“We are pleased to welcome David to our board of directors,” said Michael Calbert, Dollar General’s chairman of the board. “David brings a deep knowledge of the global marketplace and vast experience in finance, operations, strategy and risk management, which will be an asset to Dollar General as we focus on driving value to our customers, employees and shareholders.”

Rowland’s career spanned nearly four decades with Accenture. During which time, he served in notable leadership positions including executive chairman; interim CEO; CFO; senior VP, finance; as well as a variety of consulting and finance leadership roles of increasing responsibility beginning in 1983.

As of May 5, 2023, the company’s operated 19,294 Dollar General, DG Market, DGX and pOpshelf stores across the United States and Mi Súper Dollar General stores in Mexico.

The largest for-profit thrift retailer in the U.S.and Canada has gone public.

Savers Value Village launched its initial public offering at $18 a share,  above the expected range of $15 to $17. The stock started trading on the New York Stock Exchange on Thursday, June 29, under the symbol SVV.

Savers Value Village is owned by private equity firm Ares Management Corp.,which will retain an 88% stake in the company after the IPO. Savers was founded in 1954, and opened its first store in an old movie theatre in San Fransisco. The chain partners with local nonprofit organizations, accepting donations of clothing and household items on their behalf and paying them for the goods. 

Savers, which is based in Bellevue, Wash., operates stores in the U.S., Canada and Australia under banners that include Savers, Value Village, Unique and 2nd Ave. 

Revenue totaled $1.44 billion in 2022, up 19% from the prior year, while net income was flat at $84.7 million, according to a report by Reuters.

 

Northeast Grocery has added a Tops veteran to its C-suite.

The parent company of Price Chopper/Market 32 and Tops Friendly Markets has named John Persons as chief operating officer. Persons will oversee both operating companies, as well as the Northeast Shared Services (a subsidiary of NGI providing services to both operating companies) merchandising and marketing functions.

Persons joins NGI after 39 years with Tops, most recently serving as the president of the grocery chain, which is based in Williamsville, N.Y.  Ron Ferri, a 34-year Tops veteran and most recently executive VP, operations & distribution, will succeed Persons as president of Tops. 

In addition to Persons’ promotion, Mike Miller has been named chief administrative officer (CAO). He was previously senior VP, human resources and executive VP, human resources and administration at Northeast Shared Services. In his new role, Miller will lead the human resources, legal, government affairs, corporate communications, public relations, and risk management functions, as well as oversee merger integration.

“Promoting John to COO and Mike to CAO fills out our executive leadership team and bolsters our experience and expertise in many of the functional areas that continue to contribute to our combined company’s growth,” said Frank Curci, CEO of Northeast Grocery.

“We are very fortunate to have the seasoned, proven leadership of Blaine Bringhurst at Price Chopper/Market 32 and now Ron Ferri at Tops at the helms of our operating companies.”

  Headquartered in Schenectady, NY, Northeast Grocery, Inc. (NGI) is the parent company of Price Chopper/Market 32 and Tops Friendly Markets, which collectively operate nearly 300 supermarkets across New York, Massachusetts, Vermont, Connecticut, Pennsylvania, and New Hampshire and employ more than 30,000 associates.

Southern New Jersey’s highest-trafficked mall has added a fast-expanding seafood sensation to a restaurant lineup that includes The Capital Grille, Seasons 52, and Maggiano’s Little Italy.

Eddie V’s, a national chain highly regarded for one of the restaurant industry’s most complete menu of fresh oysters, has opened its 30^th location at PREIT’s Cherry Hill Mall, a high-income suburb of Philadelphia.

Know for its wide-ranging menu of shellfish and fresh fish (including three different preparations of red snapper), Eddie V’s has a presence in 14 states that include Massachusetts, Texas, Michigan, and California.

The restaurant also serves up filet mignon, New York strip, and ribeye steaks in main-course menu that ranges from $40 to $100.

“We are committed to providing best-in-class offerings, and Cherry Hill Mall continues to be a beacon for new-to-portfolio tenants elevating the region’s dining as well as shopping and entertainment needs,” said PREIT CEO Joseph Coradino.

Other new arrivals at Cherry Hill Mall, whose average sales per sq. ft. are $940, are Psycho Bunny. Brooks Brothers, Uniqlo, and Oak & Fort are scheduled to open there later in the year.