Pulse Ratings Inc.

Retail Buzz Kroger: Agrees to Acquire Giant Eagle Summary: Kroger and Giant Eagle, Inc. today announced a definitive agreement under which Kroger will acquire Giant Eagle, a food and pharmacy retailer with approximately $9 billion in annual sales and 197 supermarkets and 11 standalone pharmacies. The purchase price stands at $1.65 billion, comprised of $1.25 billion in cash consideration and the assumption of approximately $400 million in outstanding liabilities. Despite the acquisition, Kroger noted that as part of its commitment to shareholder returns, the Company expects to maintain its dividend, subject to board approval, continue its previously announced $2 billion share repurchase program, and preserve financial flexibility to invest in its strategic priorities and core business. Kroger expects the transaction to be accretive to adjusted EPS per diluted share in the second full year after close, excluding one-time transaction and integration costs. In connection with obtaining the requisite regulatory clearance necessary to consummate the transaction, Kroger and Giant Eagle expect to make limited Giant Eagle store divestitures. The transaction is expected to close in 2027, subject to receipt of required regulatory clearance and other customary closing conditions. Please reach out to Dennis Cantalupo, CCCRP, Scott Friedman, CCCRP, Lori Ziegler, Jackie Mulligan with any questions you may have. Link to full report & Pulse Perspective: https://lnkd.in/eUxyauYc #RetailBuzz #PulseRatings #Kroger #GiantEagle #Acquistion #RetailNews #Retail #RetailCredit

SEE MORE. KNOW SOONER. DECIDE SMARTER. Pulse Ratings Inc. helps retail suppliers, landlords, and institutional investors minimize credit risk and protect profitability. Acting as an extension of your team, our experienced analysts continuously monitor retailer financial health, identify emerging risks, and provide actionable insights that support better business and investment decisions. 🌐 Please contact Dennis Cantalupo, CCCRP, if you would like to learn more or visit www.pulseratings.com

💠 While consumer spending remains pressured by inflation and ongoing economic uncertainty, several retailers on our watch list have recently received new financing or additional sponsor support to bolster liquidity and fund near term liquidity needs. These capital injections have generally resulted in improved supplier payment performance and provided additional time for management teams to execute turnaround plans. However, access to capital alone does not resolve underlying business challenges, and many of these retailers must still demonstrate sustained improvement in sales, profitability, and cash flow. At the same time, West Marine's recent bankruptcy filing serves as a reminder that retailers unable to stabilize operations and secure sufficient liquidity remain vulnerable in the current environment. Below are several situations we continue to monitor closely. ❗ Recent Updates on: Saks Global, West Marine, QVC, Children's Place Inc, Leslie's Inc, AMC Entertainment Holdings Inc, Yum! Brands Inc, Petco Health and Wellness Company Inc, Designer Brands Inc, Bed Bath & Beyond Inc, Sleep Number Corp, Red Robin Gourmet Burgers Inc, Destination XL Group Inc, Dave and Buster's Entertainment, Inc, Cato Corp, Tillys Inc, Torrid Holdings Inc, Advance Auto Parts Inc & more. 🌐 FULL REPORT: https://lnkd.in/eCYzzEsb ✉️ Reach out to Dennis Cantalupo, CCCRP and Scott Friedman, CCCRP with any questions you may have.

Retail Buzz Leslie's: Preparing to File Chapter 11 Summary: As per a WSJ report, Leslie's is planning to file for Chapter 11 as early as next week in Houston. The report states that the retailer is being advised by law firm Simpson Thatcher & Bartlett and financial advisors at Centerview Partners. Please reach out to Dennis Cantalupo, CCCRP or Scott Friedman, CCCRP with any questions you may have. Link to full report & Pulse Perspective: https://lnkd.in/gG-YJUxE #RetailBuzz #PulseRatings #Leslies #Chapter11

Retail Buzz Leslie's: Files Chapter 11 Summary: Leslie's, Inc. today announced that it has for Chapter 11 protection and entered into a Restructuring Support Agreement (“RSA”) with a group of its existing lenders that "lays the groundwork for transactions that will significantly strengthen the Company’s capital structure, rationalize its retail operational footprint and create greater financial flexibility to support reinvestment in the business and continued focus on operating execution of its strategic transformation." The RSA includes commitments for $90 million of new-money debtor-in-possession financing and a $60 million equity financing, with the equity financing fully backstopped by certain of the RSA parties, and a reduction of approximately $685 million, or 90%, of the Company’s outstanding funded debt. To implement the RSA, Leslie’s filed voluntary petitions for prearranged Chapter 11 cases in the United States Bankruptcy Court for the Southern District of Texas. Upon emergence, the Company expects to be under the majority ownership of a group of its existing lenders. Leslie’s expects to move through this process efficiently, with the goal of emerging from chapter 11 in early 2027. Simpson Thacher & Bartlett LLP and Haynes and Boone, LLP are serving as legal advisors, BRG, LLC is serving as financial and restructuring advisor, Centerview Partners LLC is serving as investment banker, and C Street Advisory Group is serving as strategic communications advisor to the Company. The Company also announced the closure of 76 stores and indicated that through the Chapter 11 process it will continue to evaluate its real estate portfolio. Leslie’s will continue operating in the ordinary course of business throughout the Chapter 11 process and filed a number of customary “first day” motions. To fund operations during the Chapter 11 process, Leslie’s has also filed a motion seeking approval of the $90 million DIP facility from a group of its existing lenders and a fully committed $225 million DIP asset-based financing facility from its existing ABL lenders. Additional information regarding Leslie’s chapter 11 cases, including Court filings and other documents related to the proceedings, is available through the Company’s claims agent, Kroll, at https://lnkd.in/grGuhNcm. Please reach out to Dennis Cantalupo, CCCRP or Scott Friedman, CCCRP with any questions you may have. Link to full repot & Pulse Perspective: https://lnkd.in/gZ_Z_p2S #PulseRatings #RetailBuzz #Leslies #Chapter11 #Restructuring

Retail Earnings Round Up: 2Q26 "The Consumer Remains Cautious But Not Absent" While second-quarter earnings season is still underway, enough retailers have reported to provide an early look at the trends shaping the sector. Companies discussed in the report include: Best Buy, DICK'S Sporting Goods, Dollar General, Grocery Outlet, Target, Walmart, Kohl's, ROSS DRESS FOR LESS & More. 🌐 Full Report: https://lnkd.in/eEXTiFgB For more information please contact: Dennis Cantalupo, CCCRP Scott Friedman, CCCRP #Retail #RetailEarnings #CreditRatings #ConsumerSpending #FinancialAnalysis #PulseRatings