Grocery Chain Files Bankruptcy

By: Associated Press
By: Associated Press

Supermarket chain Winn-Dixie says it has filed for bankruptcy reorganization.

The move comes less than two weeks after it reported decreased revenues and increased losses from a year ago.

The store has struggled to compete with Wal-Mart.

Winn-Dixie says it intends to use the reorganization to improve operations and its financial performance, but it also plans to reduce expenses and decide how to better use its assets to make its stores more productive.

"So many people confuse it with Chapter 7, liquidation," said Joanne Gage, vice-president of marketing for Winn-Dixie. "The stores are still open as normal. To the customers, it should appear as if it's business as usual. For the employees, they are still getting paid. They still have their jobs. It gives the company a chance for them to reorganize their finances."

Winn-Dixie runs more than 900 stores and employs about 80,000 workers in the southeastern U.S. and in the Bahamas.


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