Bi-Lo LLC, the supermarket company that owns the Winn-Dixie chain, is preparing for a potential bankruptcy filing as soon as next month, according to people with knowledge of the matter.
Bi-Lo is laboring under more than $1 billion in debt following its 2005 buyout by Lone Star Funds. The company and its creditors have held talks to discuss a possible debt-to-equity swap, as well as alternatives such as asset sales, Bloomberg reported last year.
Acquisition of Winn-Dixie
On December 19, 2011 it was announced that BI-LO and Winn-Dixie would merge to create an organization with some 690 grocery stores and 63,000 employees in eight states throughout the southeastern United States.BI-LO will purchase Winn-Dixie for USD$530 million, and operate Winn-Dixie as a subsidiary with its stores maintaining the Winn-Dixie name. It was later announced that the merged company would be based at Winn-Dixie’s former headquarters in Jacksonville, Florida In early 2013, BI-LO phased out its own private label soft drinks in its BI-LO stores in favor of the “Chek” brand used by Winn-Dixie.