The binding agreement concludes the restructure of 92% of the company’s liabilities, and demonstrates a strong commitment to the business by primary lenders.
● Financial restructuring establishes a strong capital structure to continue The Sultan Center’s successful turn-around plan.
Kuwait, October 10, 2021: Kuwait-headquartered supermarket chain The Sultan Center (TSC) today crossed a major milestone in the company’s turnaround plan. The Sultan Center today announced it has entered into a binding agreement with the National Bank of Kuwait (NBK) and Al Ahli Bank of Kuwait (ABK) to restructure KD 76.6 million of Sultan’s debt, achieving a restructure of 92% of the company’s total liabilities.
As a result of its KD 76.6m restructuring agreement, repaid over ten years, The Sultan Center will significantly rebalance its capital structure, strengthen its balance sheet, and position it to continue growing its core business.
The Sultan Center Chief Financial Officer Haitham Shalaby said: “The agreement places The Sultan Center on a path to improve its capital structure and execute its long-term business strategy. We thank our financial partners for their support. Today’s agreement is a validation both for our business model and our robust capital position. This restructuring, coupled with an increase in profitability and a decrease in our current liabilities, provides a sound foundation for growth in the months and years ahead. We now have the operational efficiency and flexibility to fully pursue our ambitions of delivering the most sought-after grocery retail market experience in the region.”
The three-phased ‘Kuwait Retail First” turn-around plan was tasked with refocusing the company on its core retail business, boosting its balance sheet, and improving cash flow. At the
center of the plan is a commitment to having a consistently strong core retail business. After delivering this turnaround plan, The Sultan Center is set on a new store expansion drive regionally, involving multiple projects that are currently underway that convey flagship concepts providing a unique experience that is tailored to the discerning customer.
Sultan’s Turn-around Plan
Launched in 2017, Sultan’s turn-around plan aimed to refocus the company on its core retail business by exiting non-core assets and non-performing activities on the one-hand, and on the other hand focusing on enhancing its core retail business. The plan had three main objectives: 1. Exiting non-core activities (successfully completed in 2019), 2. Bolstering the balance sheet and restructuring debt (successfully completed with today’s announcement), and 3. Grow retail business (currently in progress and on schedule). Other goals include establishing a world-class and robust corporate governance structure, introducing a leaner business model, stronger supplier relationships, and an omni-channel approach to its business. All of which are striding ahead of scheduled targets.
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About The Sultan Center (TSC)
The Sultan Center (TSC) for Food Products KSCP is the largest independent, publicly-traded retailer listed on Boursa Kuwait. The company operates supermarkets in Kuwait, Jordan, Oman, and Bahrain. TSC currently operates over 60 stores in the Middle East, including express stores strategically positioned around Kuwait that offer quick and convenient shopping experience to provide high-quality products to serve grab-and-go customers.
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