Parent Company's Possible Bankruptcy Could Close 200 Winn-Dixies

JACKSONVILLE, FL --The Winn-Dixie supermarket chain may close nearly 200 grocery stores in the Southeast if its parent company files for bankruptcy, Bloomberg News reported.

Quoting an anonymous source, Bloomberg News announced that Bi-Lo LLC, which acquired Winn-Dixie stores in 2012, plans to either file for bankruptcy as soon as March or request a restructuring of its debts in federal court. As a result, nearly 200 Winn-Dixie grocery stores could go out of business, according to Bloomberg News.

There are currently about 500 Winn-Dixie stores in five states in the Southeast, mostly in Florida.

According to Business Insider, talk of bankruptcy may be the result of Amazon acquiring Whole Foods in 2017. That's put pressure on grocery store chains to shutter doors and do more business via e-commerce.

Bi-Lo is owned by Southeastern Grocers, based in Jacksonville, the fifth-largest grocery store chain in the country. Southeastern Grocers operates more than 700 stores and employs 50,000 employees in the United States.

While Southeastern Grocers would not comment on reports of bankruptcy, it did acknowledge in a statement that it is reviewing its financial strategies for Bi-Lo . Bi-Lo has accumulated nearly $1 billion in debt.

“Southeastern Grocers is undertaking an ongoing strategic review in advance of our unsecured bond maturity later this year,” read the statement. “The company’s business operations continue to be strong, as we serve our customers with quality and commitment by working seamlessly with our business partners every day. We are dedicated to being a great place for associates to work and a great place for our customers to shop by providing quality, service and value in the communities we serve.”

Founded in 1925, Winn-Dixie has had its share of financial struggles in the past. It previously filed for bankruptcy in 2005, closing 326 stores. It filed again in 2009. And, last year, the company closed 19 more stores throughout the Southeast.

Currently, Winn-Dixie has 60 stores in Alabama, 17 in Georgia, 47 in Louisiana, 14 in Mississippi and 358 in Florida.

There are about 100 Winn-Dixie stores operating in Pasco, Pinellas, Hillsborough, Sarasota, Manatee and Polk counties.

To read the complete article, visit Bloomberg News.

Image via Winn-Dixie