Staples and Sycamore Partners Struggle with $6 Billion Debt Challenge

Back in 2017, office-supply chain Staples made big news when it was acquired by Sycamore Partners for $6.9 billion. But Sycamore financed the acquisition through $5.7 billion in debt – and now Staples itself is faced with a staggering $6 billion debt problem.

According to Bloomberg data, that $6 billion includes an almost $300 million loan that’s matures this year, and more than $5 billion coming due in 2026. 

However, help may be on the way, with banks that include JP Morgan Chase and Morgan Stanley looking for investor interest in a debt package to refinance Staples’ near-term debt. A deal may be in the works by the end of April.

Earlier this year, Staples said it had the liquidity to satisfy its 2024 loan payment, and also said it might refinance upcoming loan maturities in the second half of this year.

Staples is known for several failed attempts to acquire competitor  Office Depot. In 2016, the U.S. Federal Trade Commission blocked Staples bid on anti-competition grounds.