Winn-Dixie parent files for Chapter 11 bankruptcy

Southeastern Grocers submits petitions today in Delaware court.


  • By Mark Basch
  • | 7:23 a.m. March 27, 2018
  • | 5 Free Articles Remaining!
Winn-Dixie parent files for Chapter 11 bankruptcy Southeastern Grocers submits petitions today in Delaware court.
Winn-Dixie parent files for Chapter 11 bankruptcy Southeastern Grocers submits petitions today in Delaware court.
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Southeastern Grocers, the Jacksonville-based parent of Winn-Dixie and four other supermarket chains, filed its previously announced Chapter 11 bankruptcy restructuring plan early Tuesday morning.

The case was filed in U.S. Bankruptcy Court for the District of Delaware. New York firm Weil, Gotshal & Manges LLP is the company’s lead attorney.

The company already has an agreement with 80 percent of its creditors to approve the pre-packaged plan.

The Chapter 11 petition says Southeastern Grocers has between 50,000 and 100,000 unsecured creditors. Wells Fargo & Co., the trustee for $522 million in unsecured notes, is listed as the largest creditor.

Other large unsecured creditors are C&S Wholesale Grocers, with a claim of $109 million, and Cardinal Health, with a claim of $50.5 million.

All other claims are about $5 million or less.

The company plans to close 94 stores but continue operating 582 in seven states under the banners Winn-Dixie, Bi-Lo, Harveys and Fresco y Mas.

The restructuring agreement will reduce debt by more than $500 million, allowing the company to reinvest capital in remodels and new stores.

“This pre-packaged, court-supervised financial restructuring process provides for a clear and expedited path to put SEG in the best position to serve our communities and succeed in the competitive retail market in which we do business,” CEO Anthony Hucker said in a news release Tuesday.

 

 

 

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