INDIANAPOLIS -- Marsh Supermarkets Inc. said that on January 6, it received the proceeds of a $25 million two-year term loan. The proceeds of the loan were used to reduce the outstanding borrowings under the company's revolving credit facility, increasing the company's available borrowings to approximately $55 million as of January 10.
Don E. Marsh, chairman and CEO, said, "The term loan enhances the company's liquidity position and continued commitment to further progress on the previously announced process of identifying and considering strategic alternatives [image-nocss] for the company."
The company also announced that on January 6, Douglas W. Dougherty was appointed to the newly created position of executive vice president of finance and administration. Dougherty will retain his responsibilities of CFO in addition to assuming additional administrative duties with the goal of improving cash flow and reducing debt.
In late November 2005, Marsh reported its financial results for the second fiscal quarter ended Oct. 15, 2005, a net loss of $3.4 million compared to net income of $1.3 million for the same period the previous year. The company also announced that it has retained Merrill Lynch & Co. to explore strategic alternatives for the enhancement of shareholder value, including a possible sale.
Marsh is a leading regional chain, operating 70 Marsh supermarkets, 38 LoBill Foods stores, eight O'Malia Food Markets, 160 Village Pantry convenience stores, two Arthur's Fresh Market stores, and 1 Savin*$, in Indiana, western Ohio, and Illinois. It also operates Crystal Food Services, which provides catering, cafeteria management, office coffee, coffee roasting, vending and concessions and restaurant management; Primo Banquet Catering & Conference Centers; Floral Fashions, McNamara Florist and EnfloraFlowers for Business.
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