Savers Value Village (SVV) said Tuesday it is starting a planned secondary public offering of 15 million shares offered by funds, investment vehicles or accounts managed or advised by Ares Management (ARES) and Savers Value's chief executive.

The selling stockholders plan to give underwriters a 30-day option to buy up to an additional 2.25 million shares at the public offering price, less the underwriting discount, Savers Value said.

Savers Value also said it has authorized the simultaneous purchase from the underwriters of $20 million of the shares as part of the offering, at a price per share equal to the price per share to be paid by the underwriters to the selling stockholders.

Savers Value said it will fund the share buyback from cash on hand and added it is not part of an existing share repurchase plan authorized in November 2023.

The underwriters won't get any compensation for the shares being repurchased, the company said.

Savers Value shares were down 2.6% in recent premarket activity.