"We have concluded that a sale of our Bahamian operation is in the company's best interest as we continue to sharpen our focus on successfully implementing our business plan and preparing to emerge from Chapter 11," said Peter Lynch, Winn-Dixie's president and chief executive officer, in a statement. Though the stores are profitable, he said they are not part of the company's core business. The proceeds from the transaction will help the retailer upgrade its US portfolio.
Winn-Dixie owns the stores through a subsidiary called W-D (Bahamas). Public shareholders in the Bahamas, who control 22% of the entity, will continue to hold their stake in the units. Winn-Dixie now needs bankruptcy court approval to close the deal.
After the transaction, Winn-Dixie will operate 538 stores in Alabama, Florida, Georgia, Louisiana and Mississippi. As part of its reorganization, the grocer has reduced its store count through sales and closures from 913 units since last summer.
Winn-Dixie filed for bankruptcy in February last year after facing competition from other grocers and discounters such as Wal-Mart. The retailer's executives have said that they plan to emerge from Chapter 11 some time later this year.
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