Wheels of Misfortune 2018

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  • #17345

    sme
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    Bloomberg reports that Winn Dixie parent Bi-Lo and Tops Friendly Market could both declare bankruptcy this month, an ominous shakeout in a grocery industry that is bracing for new competition from Amazon and its newly acquired Whole Foods Subsidiary

    February 18, 2018

    SME

    • This topic was modified 5 months ago by  sme.
    #17469

    sme
    Moderator

    SME Update
    Winn Dixie
    By Dahlia Ghabour – Reporter, Jacksonville Business Journal
    Feb 26, 2018, 1:53pm
    Brookshire Grocery is buying eight Winn-Dixie stores from Southeastern Grocers.The terms of the deal were not disclosed, but the stores are in various locations across South Louisiana.

    The stores will close for a few days and reopen under BGC’s Super 1 Foods banner. BCG worked with The Food Partners, a grocery industry investment banking firm, as a strategic and financial advisor for the acquisition.

    “These stores are a strong fit for our Super 1 Foods banner, and we look forward to welcoming new customers and employees in Acadiana,” said Brad Brookshire, Chairman of the Board and Chief Executive Officer for BGC in a release. “We’re a family business celebrating our 90th anniversary this year, and we look forward to many more years here.”

    Super 1 Foods has 37 stores across Louisiana, Texas and Arkansas.

    Trey Edwards, Winn-Dixie’s regional vice president for ALabama, Louisiana and Mississippi, said that it seemed to be a good match and that employees would have the opportunity to re-interview for ongoing positions.

    For Southeastern Grocers, the transfer of stores comes among a storm of speculation that the company could close or declare bankruptcy as soon as March. SEG, which also operates Harveys, Bi-Lo and Fresco y Mas stores, has more than a billion dollars in debt coming due in 2018 and 2019.

    In addition to the BGC stores, Baton Rouge-based grocery chain Shoppers Value is also purchasing seven Winn-Dixie stores, including three in Mississippi. Shoppers Value plans to take over the locations in March and flip them to reopen by September, maintaining the same staff.

    Shoppers Value taking over former Winn-Dixie locations is nothing new: when the company operated as Piggly Wiggly stores, it took over three old Winn Dixies in Baton Rouge, followed by two more in 2017.

    “We are always open to considering opportunities that can increase our ability to provide customers with an improved shopping experience,” said SEG spokesman Joe Caldwell in a statement. “We were approached by Shoppers Value and Brookshire Grocery Co., and after much consideration, we reached an agreement to transition the 15 stores to these retailers. We know Shoppers Value and Brookshire’s very well and are confident that the 15 stores being transferred, with the support of their new owners, will see continued success.”

    #17546

    sme
    Moderator

    Update SME
    Winn-Dixie operator Southeastern Grocers files for bankruptcy protection
    Southeastern Grocers said it filed for Chapter 11 bankruptcy protection to restructure debt.
    The Florida-based operator of supermarket chains Winn-Dixie and Bi-Lo listed assets in the range of $1 billion to $10 billion and liabilities in the range of $1 billion to $10 billion.
    The restructuring will reduce its debt by $500 million as it will continue to operate over 580 stores, the company said.
    Published 6:47 AM ET Tue, 27 March 2018 Updated 17 Hours Ago
    Reuters
    Winn-Dixie operator Southeastern Grocers files for bankruptcy protection Winn-Dixie operator Southeastern Grocers files for bankruptcy protection
    17 Hours Ago | 00:55
    Southeastern Grocers, the Florida-based operator of supermarket chains Winn-Dixie and Bi-Lo, said on Tuesday it filed for Chapter 11 bankruptcy protection to restructure debt.

    The company listed assets in the range of $1 billion to $10 billion and liabilities in the range of $1 billion to $10 billion, the Delaware bankruptcy court filing showed.

    The restructuring will reduce its debt by $500 million as it will continue to operate over 580 stores, the company said.

    Southeastern Grocers has secured 100 percent committed exit financing in the form of a senior secured six-year term loan facility in the original principal amount of $525 million and an asset-based lending revolving credit facility.

    The company said earlier this month it planned to file for bankruptcy protection and will close 94 underperforming stores.

    The margins of supermarkets have been hurt by growing competition from big-box stores, including Walmart and online giants such as Amazon.com.

    Southeastern Grocers operates its stores in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina and South Carolina.

    SME

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