Winn-Dixie seeks court OK of $6.75 million warehouse stalking horse bidder, may sell seven more stores

By Caroline Salls

Pittsburgh, Aug. 4 - Winn-Dixie Stores, Inc. requested court approval of the $6.75 million sale of debtor Winn-Dixie Logistics, Inc.'s Harahan warehouse facility to Ackel Real Estate, LLC and John Georges, according to a Thursday filing with the U.S. Bankruptcy Court for the Middle District of Florida.

The sale is subject to higher or better offers at auction to be held Aug. 23.

According to the motion, before filing for bankruptcy, Winn-Dixie used the Harahan warehouse facility to supply stores located in Louisiana, but it has since consolidated its warehouse operations for this area into the Hammond, La., facility.

The minimum initial overbid at auction is $6.95 million. Bids must be accompanied by a $2 million deposit.

If Ackel and Georges are not the high bidder, Winn-Dixie will pay them a $50,000 termination fee.

Store sale procedures

The company also requested court approval to sell the leasehold interests and equipment in seven of its stores.

The stores to be sold are located in Tallahassee, Fla., Jacksonville, Fla.; West Palm Beach, Fla.; Pembroke Pines, Fla.; Pensacola, Fla.; Largo, Fla.; and Deltona, Fla.

If the leasehold interests and equipment are not sold, the company asked the court for approval to reject the leases effective Aug. 24.

Bids on one or more of the additional stores must be submitted by Aug. 23.

The company will hold an auction on Aug. 29 for any stores for which bids have been submitted, and a sale hearing is scheduled for Sept. 7.

Winn-Dixie, a Jacksonville, Fla., supermarket company, filed for Chapter 11 on Feb. 21, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. The case was later transferred to the U.S. Bankruptcy Court for the Middle District of Florida. Its Chapter 11 case number is 05-03817.

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