Winn-Dixie Operator Southeastern Grocers Files for Bankruptcy
Southeastern Grocers LLC, the Florida-based operator of supermarket chains Winn-Dixie and Bi-Lo, said on Tuesday it filed for Chapter 11 bankruptcy protection to restructure debt. The company listed assets in the range of $1 billion to $10 billion and liabilities in the range of $1 billion to $10 billion, the Delaware bankruptcy court filing showed. Reuters reports the restructuring will reduce its debt by $500 million as it will continue to operate over 580 stores.
Total Retail's Take: Traditional supermarkets have been hurting for sales recently due to the many changes happening in the grocery delivery market. Since Amazon.com's $13 billion acquisition of Whole Foods last summer, much has changed within the grocery vertical, including the growing influence of online sellers. Between the many meal subscription services that have sprung up (e.g., Blue Apron), the emergence of online shopping options such as Brandless, and big-box retailers partnering with grocers (e.g., Kohl's partnering with Aldi), there's been a lot of change in grocery, which has left traditional grocery stores struggling to keep up as they seek to evolve their businesses.