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Winn-Dixie asks court to OK agreement to sell 79 stores
By Caroline Salls
Pittsburgh, July 1 - Winn-Dixie Stores, Inc. asked the U.S. Bankruptcy Court for the Middle District of Florida to approve its preliminary agreements to sell 79 stores, according to a company news release.
The $38.7 million purchase price is for leases and equipment at the stores and does not include inventory, which will also be sold.
According to the release, the 20 potential buyers intend to continue operating these locations as food and beverage stores.
These stores are part of the 326 locations that the company previously announced it intends to sell or close in conjunction with its new "store footprint" strategy to strengthen its performance and achieve long-term profitability by focusing on its strongest markets and reducing the size of its store base from 913 stores in the United States and the Bahamas to 587 stores.
The agreements are subject to higher and better offers that may be received at an auction to be held July 18 and July 19.
A sale hearing is scheduled for July 27 to July 29.
Also, the company said its marketing effort is ongoing for those stores for which there is currently no sale agreement.
Winn-Dixie is seeking court authorization to conduct store-closing sales at locations that it is unable to sell at the auction as food and beverage stores.
The company said in the release that it expects these sales to begin on Aug. 1 and be completed in early to mid-September.
Winn-Dixie, a Jacksonville, Fla.-based supermarket company, filed for bankruptcy on Feb. 21 with the U.S. Bankruptcy Court for the Southern District of New York and has moved its case to the U.S. Bankruptcy Court for the Middle District of Florida. Its Chapter 11 case number is 05-11063.
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