Winn-Dixie agrees to sell 102 stores to 30 buyers for $45.6 million

By Caroline Salls

Pittsburgh, July 19 - Winn-Dixie Stores, Inc. has reached agreements to sell 102 stores to 30 buyers for a total purchase price of $45.6 million, according to a company news release.

According to the release, a majority of the buyers intend to operate these locations as food and beverage stores.

These stores are part of the 326 locations that the company previously announced it intends to sell or close in conjunction with its new "store footprint" strategy. Under than strategy, Winn-Dixie reported on June 21 that it was taking action to strengthen its performance and achieve long-term profitability by focusing on its strongest markets and reducing the size of its store base to 587 stores from 913 stores in the United States and the Bahamas.

Earlier this month, Winn-Dixie announced that it had reached preliminary agreement to sell a total of 79 stores to 20 potential buyers, all of which intend to operate these stores on an ongoing basis.

The additional purchase agreements are the result of an auction held in New York on July 18.

The $45.6 million purchase price for leases and equipment at the 102 stores is an increase of $6.9 million from the $38.7 million announced previously.

The purchase price does not include inventory to be purchased.

Winn-Dixie will seek final approval of these sale agreements from the U.S. Bankruptcy Court for the Middle District of Florida at a hearing scheduled for July 27 to July 29.

As previously announced, Winn-Dixie is seeking court authorization to conduct store-closing sales at the locations that will not be sold as food and beverage stores. Subject to court approval, the company said it expects these sales to begin by Aug. 1 and be completed in early to mid-September.

An auction for the sale of the leases at these locations has been scheduled for Aug. 9.

Jacksonville, Fla.-based Winn-Dixie filed for Chapter 11 on Feb. 21 in the U.S. Bankruptcy Court for the Southern District of New York. The case was later transferred to the Florida court. Its case number in the proceeding's current jurisdiction is 05-03817.

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