Photo: Fresco Y Más
Southeastern Grocers (SEG), parent company of Bi-Lo, Fresco Y Más and Winn-Dixie, has filed for Chapter 11 bankruptcy protection after announcing plans to close 94 stores.
The supermarket operator, which is looking to reduce its debt by more than $500 million, said closing the underperforming stores is necessary, but that doing so will enable the company to work through a restructuring agreement that should have it emerge from bankruptcy within 90 days.
SEG’s Chapter 11 petition lists C&S Wholesale Grocers ($109 million) and Cardinal Health ($50.5 million) among the largest unsecured creditors. Wells Fargo is a trustee on a bond issuance of about $522 million. All other claims against the company are $5 million or less.
A company statement said that SEG will “continue to thrive with 582 successful stores” and that it will move ahead with a three-year plan that involves creating “stunning, remodeled stores” that provide “customers with fresh, new concepts and products to cater to the local tastes and needs of the neighborhoods” it serves.
The banners owned by SEG have been under continuing competitive pressure from Publix and Walmart, which continue to expand throughout the Southeast. Other growing grocery chains, including Aldi and Trader Joe’s, have also chipped away at SEG’s market share.
SEG operates stores in Alabama, Florida, Georgia, Louisiana, Mississippi, North and South Carolina.