The terms of the deal were not disclosed, but Food Lion, which is a subsidiary of Delhaize America, says it will pay for the stores in cash out of its planned 2004 capital expenditures budget.
Last month, Winn-Dixie sold 10 Kentucky stores to EW James & Sons Supermarkets of Union City, TN and 16 Kentucky stores to Buehler Foods Inc. of Jasper, IN. In April, the chain said it planed to exit 111 stores in 16 non-core markets in the Midwest, Virginia and certain areas of North Carolina and South Carolina.
Food Lion says that it plans to conduct further analysis of the remaining locations to better determine how the stores fit in the company's growth plans. According to the chain, this acquisition will is part of a strategy to shore up the chain's presence in its current geographic footprint. Currently, the chain operates more than 1,200 stores in 11 states in the Southeastern U.S.
Food Lion will assume leases and acquire certain equipment and inventory for stores located in Dunn, Elizabeth City, Elizabethtown and Havelock, NC, and Clarksville, Danville, Farmville, Martinsville, South Hill and Stanleytown, VA.
Food Lion will re-brand the stores in Clarksville, Danville, Martinsville, South Hill and Stanleytown, with only a few-days gap in store operations. The store in Elizabethtown will be remodeled significantly to replace Food Lion's current location in that town.
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