Leverage ImprovementA measurable reduction in leverage during 2024 eases near-term refinancing and interest burden risks. Sustained lower leverage would improve financial flexibility, support working capital needs, and reduce bankruptcy risk, strengthening the company’s capacity to stabilize operations.
Historical Cash GenerationPrior operating cash flow generation demonstrates the business has historically converted operations into cash. If management stabilizes operations, this track record suggests the company could resume positive cash flow, supporting capex, debt servicing, and gradual recovery over months.
Defensive Industry ExposureOperating in grocery retail provides structural demand resilience as food and essentials remain inelastic. This end-market stability supports more predictable revenue baselines versus cyclical sectors, aiding recovery and planning despite company-specific execution issues.