Southeastern Grocers, the parent company of Winn-Dixie stores, which is based in Jacksonville, filed for Chapter 11 bankruptcy protection to restructure debt.
Southeastern Grocers currently operates its stores in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina and South Carolina. Earlier this month, the company announced its plan to file for bankruptcy protection, as the margins of the company have been hurt by competition from companies such as Walmart and Amazon, according to a report.
“Today, with the support of our key stakeholders, we are taking the next step in the implementation of our financial restructuring plan,” Anthony Hucker, the CEO and President of Southeastern Grocers, said on Tuesday.
“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,” Anthony continued.
According to the company, it will continue to operates over 580 stores after closing 94 stores under the bankruptcy plan. In addition, the company will continue to fully pay for the existing obligations of running the supermarkets to its suppliers.
The restructure plan will reduce debt by over $500 million, and Wells Fargo Bank is trustee for the notes.