Posted on 02/22/2005 7:06:58 AM PST by Rebelbase
But grocery chain says stores will remain open, financing is lined up and employees will get paid.
NEW YORK (Reuters) - Winn-Dixie Stores Inc. has filed for bankruptcy protection, due to stiff competition and the need to restructure to stem widening losses.
(Excerpt) Read more at money.cnn.com ...
Here's the AP version of the article to avoid excerpting:
ACKSONVILLE, Fla. (AP) — Supermarket giant Winn-Dixie Stores Inc. said Tuesday it has filed for bankruptcy reorganization, less than two weeks after reporting decreased revenues and increased losses from a year ago.
Winn-Dixie and 23 of its U.S. subsidiaries filed for Chapter 11 reorganization late Monday in U.S. Bankruptcy Court for the Southern District of New York, a company news release said.
The Jacksonville-based company also announced Tuesday that it has secured an $800 million credit facility from Wachovia Bank N.A. to help pay for its reorganization, the release said. The credit facility, subject to court approval, replaces the company's previous $600 million credit line.
The company plans to use the reorganization to improve its operations and financial performance, but also to reduce its expenses and decide how to use its assets to make its stores more productive, the release said.
"This includes achieving significant cost reductions, improving the merchandising and customer service in all locations and generating a sense of excitement in the stores," said Peter Lynch, president and chief executive officer.
The company said 920 Winn-Dixie stores in eight southeastern states and the Bahamas are open.
But Winn-Dixie said it will seek court approval to terminate the leases of two warehouses and about 150 stores that were closed previously, for an annual cash savings of approximately $60 million. It also plans to sell all of its remaining manufacturing operations to reduce expenses, the release said.
For the first six months of this fiscal year, Winn-Dixie reported sales of $5.41 billion on a net loss of $552.8 million or $3.93 per share, compared with sales of $5.65 billion on a net loss of $78.3 million or 56 cents per share, for the same period in 2004
'Bankruptcy' is spelled for you in the article. The least you could do is get it right in your topic...
I've shopped at a couple here. One was terrible, one was not bad, but still didn't have much selection.
I take it the royalties from using their name for the title of "Because of Winn-Dixie" won't be enough to save them.
Geez, did someone wake up on the wrong side of the bed this morning?
Our local Winn Dixie has been going downhill for years… even remodeling hasn't helped. It was a sorry excuse of a grocery store even before the Super Wal-Mart came to town. Poor management is the root cause.
Have you noticed you have no vowells in your name??
Is "Piggly Wiggly" still in business?
I really don't care because I'm not being paid for this. If you don't like it read another article.
Geez, chill. :P
You've never accidentally skipped a letter before, Herr xrp? :P
Owl_Eagle
"You know, I'm going to start thanking
the woman who cleans the restroom in
the building I work in. I'm going to start
thinking of her as a human being"
We all have our pet peeves. Mine is the use of more periods than one at the end of a sentence.
Winn-Dixie closed one week, another chain went in and is doing excellent business. The new chain hired people with brains and some social aptitude. Now the cashiers actually say hello and do not stare off into space as if you were bothering them.
You should visit their corporate HQ -- it is as dirty and shabby as any of their stores. The founders like it that way because it conveys the "low overhead/low prices" message.
The Winn dixies around me have been horrible, slow service, bad prices compared to Publix and Albertsons much less Walmart.
Good riddance. To them, their denigrating attitude toward their customers, their "Old South" mindset (not the nice Old South, the racist one), their price gouging of the poorer neighborhoods, their employment policies, their stupid "in-store specials" that allow them to charge exhorbitant prices to anyone who hasn't yielded up their name and address to their database, and their incredibly lame store managers.
Note to Publix: former managers from Winn-Dixie have a tendancy to turn your perfectly fine stores into a Winn-Dixie clone. They cannot be retrained, so hire from within.
And WD was NEVER the low cost store.
There's still a Piggly Wiggly in Columbiana, AL.
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