Southeastern Grocers (SEG) that operates the Winn-Dixie, Bi-Lo, Harveys and Fresco y Mas grocery stores, confirmed on Thursday afternoon that it will file a court-supervised, pre-packaged Chapter 11 bankruptcy protection by the end of March to efficiently restructure its business for long-term financial health.
SEG also announced its decision to close 94 underperforming stores located across Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina and South Carolina. The company will continue to operate its remaining 582 stores. SEG said its goal was to work through the financial restructuring as quickly and efficiently as possible and likely emerge from the process within the next 90 days. The move is expected to reduce their debt by $500 million.
Anthony Hucker, President and CEO of SEG, said, “The agreement we announced today is an important step in Southeastern Grocers’ transformation to put our company in the best position to succeed in the extremely competitive retail market in which we do business.”
“With a foundation built on iconic, heritage banners and with the strong support of our leadership team, we will work through this process as quickly and efficiently as possible. We are excited to emerge with the optimal store footprint and greater financial flexibility to invest in Southeastern Grocers’ growth,” Hucker said.