Report: Service King Strapped for Cash
Nov. 23, 2021—Service King has warned its lenders that dwindling cash is casting doubt on its ability to pay debt and continue as a going concern, Bloomberg News reported.
The Blackstone Inc. and Carlyle Group Inc.-backed company reported $31 million in cash as of the third quarter after it drew $72 million on its revolving credit facility and maxed out its borrowing availability, the report said. The company also entered into a sale-lease-back agreement with some of its real estate holdings that generated $66 million in gross proceeds.
Service King reported a loss of $6 million in adjusted earnings during the third quarter, more than the $5.4 million loss it reported in the same period a year ago and far from the $27 million gain the company reported in 2019.