Thread regarding Academy Sports & Outdoors layoffs

Moody's Downgraded Acadmey ratings....1.8 Billion dollar debt due 2022 they do not think Academy will be able to cover it.

Moody's Investors Service ("Moody's") downgraded Academy, Ltd.'s ("Academy") Corporate Family Rating ("CFR") to Caa1 from B3 and Probability of Default Rating ("PDR") to Caa1-PD from B3-PD. Concurrently, Moody's downgraded the company's senior secured term loan rating to Caa2 from Caa1. The ratings outlook was changed to negative from stable.

The downgrades reflect Moody's expectations for continued weak earnings and credit metrics in the near term, driven by a challenging operating environment, the transition of the company's merchandising assortment, margin pressure from the mix shift to e-commerce and investments needed to improve the store and digital experience. In addition, the downgrades acknowledge the risk that Academy could buy back a meaningful portion of its term loan at a significant discount, which could be deemed a distressed exchange, a default under Moody's definition.

The negative outlook reflects the risk that Academy's earnings performance and liquidity including free cash flow and availability under its revolving credit facility could be weaker than expected, potentially increasing the likelihood of default.

Moody's took the following rating actions for Academy, Ltd.:

  • Corporate Family Rating, downgraded to Caa1 from B3

  • Probability of Default Rating, downgraded to Caa1-PD from B3-PD

  • $1.825 billion ($1.635 billion outstanding) Senior Secured Term Loan B due 2022, downgraded to Caa2 (LGD4) from Caa1 (LGD4)

  • Outlook, changed to Negative from Stable

https://www.moodys.com/research/Moodys-downgrades-Academys-ratings-CFR-to-Caa1-outlook-negative--PR_394240

by
| 2030 views | |
Post ID: @Y2fwVaW

8 replies (most recent on top)

After reading this, I'm happy the job in Cooking & Camping I interviewed for was placed on hold. I found something better at an Amazon seller.

by
|
Post ID: @Y2fwVaW-Uqgh

https://sgbonline.com/academys-struggles-continue/

by
|
Post ID: @Y2fwVaW-Bluv

Read this week’s articles on SGBOnline. ASO is done people. Start planning your next move if you were naive enough to hang on.

by
|
Post ID: @Y2fwVaW-Brrk

At this point, I nominate my nine year old nephew to run this joint. Why not? They seem to be grasping at straws.

by
|
Post ID: @Y2fwVaW-ymle

I made the same statement about them bringing in so called “winners” from Sports Authority, especially the ones who work (and the one who worked) in ecomm. First of all, they acted like complete a-holes snd second of all, your company failed yet they walked around like they were smarter than everyone else. One of them failed to file my paperwork on time to get me paid as a nee employee, but then had the b**ls to stand up in front of everyone at a meeting and try to make me look bad. Oh, and funny how they hire someone from Francesca’s, but the current director in ecomm talks c-ap about everyone who is from there and says he won’t hire anyone there. ASO is a dumpster fire, and I have my good champagne waiting to be popped open when that hell hole goes down.

by
|
Post ID: @Y2fwVaW-xrrc

With the way they keep bringing in top level execs from companies that were ran in to the ground makes me shake my head. Sure, they interview good, but they are looking for a job cause their current company is about to close. Francesca's Just let go of most of their Buyers, but let’s bring in theor top level folks to tun us, cause they did such a bang up job in their last job. Stage Stores has been on credit hold with almost every vendor I have, but let’s get that on-boarding going cause they obviously know what they are doing. Jokes. Sad thing is, I believe in Ken Hicks. I wanted him to be the man to turn this ship around, but he isn’t showing any signs of getting top level talent from successful companies.

by
|
Post ID: @Y2fwVaW-sley

Is Donald Trump trolling the comments here?

by
|
Post ID: @Y2fwVaW-7zrj

What do they know? That's like three years away so anything can happen

by
|
Post ID: @Y2fwVaW-6sij

Post a reply

: