Winn-Dixie parent files for bankruptcy protection, will you be affected?
Sadly, one of Northeast Florida’s most well-known brands is filing for bankruptcy. This will cost our community jobs and create more food deserts as many Winn-Dixie stores are located in parts of Jacksonville where other grocers are not present. We believe downward forces on the economy along with competitors like Walmart and Amazon led to the demise of this brand.
If Bi-lo or one of its subsidiaries is a customer or vendor you may be impacted by this bankruptcy effort and Ponte Vedra Law Group may be able to help. We help businesses who have suppliers or customers affected when they file for bankruptcy. Often times, your orders or invoices may be delayed or cancelled without compensation and this is not fair. But rest assured, in most cases there is legal recourse if it comes to that. Ponte Vedra Law Group can help with negotiations with bankrupt clients or vendors and may be able to help you recover losses.
In some cases, when a vendor or supplier goes under, this can cause major disruptions to your business and cause you to face financial peril through no fault of your own. Worried about Winn-Dixie filing for bankruptcy, give us a call for a free consultation.
Southeastern Grocers says its prepackaged bankruptcy will reduce debt by more than $500 million and free up money for remodeling stores and opening new locations.
Jacksonville scored an economic development victory in 2012 when the merger of hometown business Winn-Dixie with BI-LO created an even bigger supermarket chain that decided to put its corporate headquarters in Jacksonville.
Six years later, that combined company is back where Winn-Dixie was when it was a standalone company, going through bankruptcy in a bid to survive the hyper-competitive supermarket industry.
The bankruptcy filing Tuesday by Jacksonville-based Southeastern Grocers, the parent company of Winn-Dixie and BI-LO, officially set in motion a previously announced plan to cut debt and close 94 underperforming stores across a seven-state region.
Southeastern Grocers said in the bankruptcy filing that it faces competition on all sides and lost $139 million in 2017 in fast-changing industry where shoppers expect to find supermarket shelves stocked with “gourmet” shopping items like organic foods, prepared foods and specialty grocery items.
Southeastern Grocers said it will be able to keep up with those changes by remodeling stores and opening new ones after the bankruptcy reorganization reduces debt by more than $500 million.
“Today, with the support of our key stakeholders, we are taking the next step in the implementation of our financial restructuring plan,” Southeastern Grocers CEO and President Anthony Hucker said in announcing the bankruptcy filing. “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.”
Industry analyst David Livingston said he doesn’t expect the restructuring will change the company’s trajectory.
“They’re not going to turn things around,” Livingston said. “The idea is to just get rid of the debt, come out if it and keep milking the cash.”
The first step is the most important. Call us immediately at (904) 405-1250 for a consultation. You can’t go wrong by asking for help. When you arrive for your consultation, we will assess your financial situation and lay out your options. If you decide to retain our law firm, we’ll begin to advocate on your behalf with your bank, creditors or whoever you owe money to.