This week, Southeastern Grocers, declared bankruptcy and implementing a Restructuring Support Agreement aimed at decreasing its debt by over $500 million. According to a report by the Business Journal, the company is closing 94 stores in the restructuring process.
“The agreement we announced today is an important step in Southeastern Grocers’ transformation to put our company in the best position to succeed in the extremely competitive retail market in which we do business,” said Anthony Hucker, President and CEO. “With a foundation built on iconic, heritage banners, and with the strong support of our leadership team, we will work through this process as quickly and efficiently as possible. We are excited to emerge with the optimal store footprint and greater financial flexibility to invest in Southeastern Grocers’ growth.”
In the process of closing 94 store closures across South Carolina, Alabama, Georgia, North Carolina, Mississippi, Louisiana, and Florida, the terms of the restructuring will also include:
"We expect our financial health and free cash flow to improve in the newly reorganized company, and although the restructuring contemplates certain store closings, SEG is committed to ensuring that all associates continue to be treated with the utmost dignity, respect and compassion. We will continue every day to provide our associates with a great place to work and our customers with a store experience they can count on. On behalf of the Southeastern Grocers leadership team, I want to thank our many talented associates for their dedication and loyalty in serving our customers and community day in and day out,” Hucker finished.
Southeastern Grocers is the parent company of Winn-Dixie, another chain that filed a Chapter 11 earlier this year, Bi-Lo, Fresco y Was, and Harveys Supermarket chains.
As a part of the restructuring agreement, Southeastern Grocers will continue operating its remaining 582 stores during this process.
For more of what's happening on the retail-side, stick with us at Deli Market News.