Bankruptcy Reorganization Chapter 11
Supermarket giant Winn-Dixie says Tuesday that it has filed for bankruptcy reorganization, less than two weeks after reporting decreased revenues and increased losses from a year ago.
A news release says Winn-Dixie and 23 of its U.S. subsidiaries filed for Chapter 11 reorganization last night in U.S. Bankruptcy Court for the Southern District of New York.
The Jacksonville, Florida-based company also announced that it has secured an $800 million credit facility, to help pay for its reorganization. The credit facility, subject to court approval, replaces the company's previous $600 million credit line.
The company intends to use the reorganization to improve operations and its financial performance, but also plans to reduce expenses and decide how to better use its assets to make its stores more productive.
Winn-Dixie Stores Incorporated operates more than 900 stores and employs about 80,000 workers in the Southeastern U.S. and the Bahamas.
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