August 4, 2006 12:36 PM
Winn-Dixie Files for Bankruptcy Protection
Excerpt: Winn-Dixie Stores, the grocery chain founded by William Davis in 1925 that long had a lock on the South, announced early Tuesday that it had filed for bankruptcy protection in an effort to address financial and operational challenges that had hampered its performance.
Winn-Dixie Stores, the grocery chain founded by William Davis in 1925 that long had a lock on the South, announced early Tuesday that it had filed for bankruptcy protection in an effort to address financial and operational challenges that had hampered its performance.
The company said in its filing, made in the Southern District in Manhattan, that it had secured $800 million in debtor-in-possession financing from Wachovia Bank.
All 920 stores in eight states and the Bahamas would remain open, Winn-Dixie said.
The filing came after a long struggle to stay even with competitors like Wal-Mart. Over the last decade, Wal-Mart blanketed crucial Winn-Dixie markets, like Florida, with its supercenters which include full-line supermarkets as well as general merchandise.
Wal-Mart's reputation for low prices drove other chains to stake out their own territory with shoppers. Initially, Winn-Dixie fought back on price but then tried to make its stores more upscale, along the lines of Publix, another grocery chain based in the Southeast. In both cases, it was struggling against nimbler, more experienced foes.
In a statement released early Tuesday, the company said that because of "increased losses and reduced liquidity, coupled with subsequent credit downgrades from the major debt rating companies, Winn-Dixie experienced a tightening of trade credit from some of its vendors, which further reduced its cash availability."
Winn-Dixie said it would use the reorganization to strengthen its business by moving ahead with new sales and merchandising initiatives.
In addition, the company said it would examine ways to reduce expenses and would explore the additional sale of assets.
The chief executive, Peter Lynch, said in a statement that while the company regretted any adverse effect the filing might have, the company was convinced that it was necessary "to restructure our finances, strengthen our business performance and achieve a sustained turnaround at Winn-Dixie."
The plans include enhancing Winn-Dixie's perishables offerings and other product merchandising, Mr. Lynch said, as well has starting initiatives "to motivate associates to drive sales."
The seeds for Wal-Mart's domination of Winn-Dixie were sown in the 1980's, when Sam Walton, the Wal-Mart founder, won a seat on Winn-Dixie's board. He served for five years, from 1981 to 1986, and shortly after he stepped down Wal-Mart opened its first-ever supercenter.
READ FULL STORY ...In Search of a Sure Thing - Aug 22, 2006
Toshiba Names New President With a Record of Turnarounds - Aug 21, 2006
Four Top Performing Newsletters - Aug 20, 2006
Invest Your IRA in Real Estate? - Aug 19, 2006
Women Less Tolerant of Risk: Poll - Aug 17, 2006
Fannie Mae Scrambles for New Ways to Raise Capital - Aug 12, 2006
Questions Arise of Possible Bias at Drug Maker - Aug 10, 2006
Novartis to Become No. 1 Generic Drug Maker With $8.4 Billion Deal - Aug 02, 2006
When Greenspan Is Stumped, Investors Should Play It Safe - Feb 21, 2005
Four Strong Emerging Markets. But How to Play Them? - Feb 21, 2005
American Express's Advisory Unit Faces Fraud Charges - Feb 19, 2005
Time Warner Stops Granting Stock Options to Most of Staff - Feb 19, 2005
Exxon Mobil Takes Top Spot From G.E. - Feb 19, 2005
A New S.E.C. Rule Fails to Raise Share Prices, and Some Are Angry - Feb 19, 2005
Fed Chief Urges Cutback in Scale of 2 Big Lenders - Feb 18, 2005
Outlooks Differ at Wal-Mart and Target - Feb 18, 2005
The Times Company Acquires About.com for $410 Million - Feb 18, 2005
Merck May Resume Sales of Painkiller, Official Says - Feb 18, 2005
NASD Says Fund Family Paid Improper Fees - Feb 18, 2005
Starbucks Will Venture Into Coffee Liqueur - Feb 18, 2005
A Hedge Fund May Try to Buy Circuit City, but It May Not - Feb 18, 2005
Investors Get Shortchanged on Interest - Feb 17, 2005
E-Trade Slashes Fees Across The Board, Continuing Online Brokerage Price War - Feb 16, 2005
E*Trade Cuts Some Trading Costs - Feb 16, 2005
G.M. Will Pay $2 Billion to Sever Ties to Fiat - Feb 15, 2005
Sullivan: Accounting Sank Merger Deal - Feb 13, 2005
Bleak Outlook Dulls Sharper Image - Feb 13, 2005
Is There Hype Behind Hedge Funds? - Feb 13, 2005
Citigroup To Cut Up To 1,000 Jobs? - Feb 13, 2005
Fidelity's Outsourcing Biz Hits Record - Feb 13, 2005
Carly May Get $42 Million - Feb 13, 2005
Analyzing the I.Q. of Money - Feb 13, 2005
Marketing of Vioxx: How Merck Played Game of Catch-Up - Feb 13, 2005
Too Big: Learning From Mistakes - Feb 10, 2005
Valuing MCI in an Industry Awash in Questions - Feb 10, 2005
S.E.C. Chief, Under Cross-Pressure, Sees Some Modest Changes - Feb 10, 2005
Fiorina's Confrontational Tenure at Hewlett Comes to a Close - Feb 10, 2005
What Hewlett-Packard Seeks In a Successor to Fiorina - Feb 10, 2005
Taken For A Ride - Feb 07, 2005
Busting The Bond Myth - Feb 07, 2005
If Profits Grow, How Can the Market Sink? - Feb 06, 2005
Is Online Retailing a Victim of Its Own Success? - Feb 06, 2005
Court Blocks U.S. From Seeking Billions From Tobacco Industry - Feb 06, 2005
Fidelity Cuts Commissions On Some Internet Trades - Feb 04, 2005
Schwab to Reduce Commissions By 35% for Some Online Trades - Feb 04, 2005
For MCI, Qwest May Not Be Most Desirable - Feb 04, 2005
A Merger in Search of a Home. Yours. - Jan 31, 2005
Another Clock Is Ticking at Delta Air Lines - Jan 31, 2005
Windows, Boxes and a Halo Bolster Microsoft Profit - Jan 31, 2005
U.S. Property Prices Too High? Some Funds Look Abroad - Jan 31, 2005
Marsh to Pay $850 Million to Settle Charges by Spitzer - Jan 31, 2005
SBC Finishes $16 Billion Deal for AT&T - Jan 31, 2005
The Higher Price of Staying Public - Jan 25, 2005
AT&T Looks Beyond 'Number, Please' - Jan 25, 2005
Best of All Possible Worlds? Bond Buyers Crave Yield but Show No Fear - Jan 25, 2005
Citigroup Posts 12% Profit Rise and Sees Slowing Growth - Jan 25, 2005
Buy.com Plans $86.3 Million IPO - Jan 25, 2005
Have We Seen eBay's Highest Bid? - Jan 25, 2005
Despite Pact Over Research, Goal Is Elusive - Jan 17, 2005
Ameritrade Offers $5 Stock Trade As Brokers' Price War Heats Up - Jan 15, 2005
Schwab Reduces Assets Required For Avoiding Fees - Jan 15, 2005
With Takeover Completed, Oracle Sends Layoff Notices - Jan 15, 2005
Investors Flock to Loans Made to Companies Deep in Debt - Jan 15, 2005
Foreign-Profit Tax Break Is Outlined - Jan 15, 2005
On Subsidies, the Sky Wasn't the Limit - Jan 15, 2005
No Happy New Year for a Cable Channel Cut by DirecTV - Jan 15, 2005
Five Trading Rules To Live By In 2005 - Jan 15, 2005
Rate Expectations - Jan 15, 2005
Hollywood Agrees To Movie Gallery Bid - Jan 14, 2005
Comcast Plans Major Rollout Of Phone Service Over Cable - Jan 10, 2005
Morningstar Bets On Bidders For IPO - Jan 09, 2005
Supreme Court Will Review Conviction of Arthur Andersen - Jan 08, 2005
Marsh Executive Admits Guilt in Bid Case - Jan 07, 2005
Judge Rejects United Airlines Deal With Pilots - Jan 07, 2005
10 Ex-Directors From WorldCom to Pay Millions - Jan 07, 2005
Alltel Is Said to Be Suitor for Carrier in Northwest - Jan 07, 2005
Krispy Kreme to Reduce 2004 Reported Profit - Jan 07, 2005
Market Owner Agrees to Buy Pacific Exchange - Jan 07, 2005
Cash Flow in '04 Found Its Way Into Dividends - Jan 07, 2005
Citigroup Reverses Shift of Executives in China - Jan 07, 2005
Chief Executive Was Paid Millions, and He Never Noticed the Fraud? - Jan 07, 2005
Continental Hit by Fare Wars, Seat Glut - Jan 05, 2005
Google Sticker Shock - Jan 04, 2005
Inflation Jitters Sink Bonds - Jan 04, 2005
Krispy Kreme To Restate Results - Jan 04, 2005
Investors Continue to Pile Into Hedge Funds - Jan 04, 2005
Some Older Investors May Find Roth IRAs More Attractive - Jan 04, 2005
Ultrashort Bond Funds Offer Option for Interest-Rate Blues - Jan 04, 2005
Citigroup Names New China CEO - Jan 04, 2005
Reacting To A Dollar With No Muscle - Jan 03, 2005
Last Year's Worries Wane - Jan 03, 2005
Globally, Stocks Are Poised To Advance Further - Jan 03, 2005
From Simple To Complex, Hedge Funds Gain Ground - Jan 03, 2005
Wall Street's Designs on '05? A Merger Boom - Jan 03, 2005
The Envelopes, Please - Jan 03, 2005
Fund Industry Outlook For 2005 - Jan 01, 2005
Late Stock Market Rally Makes 2004 a Winning Year - Jan 01, 2005
F.D.A. Approves Pfizer Remedy for Nerve Pain From Diabetes - Jan 01, 2005
Doctors, Too, Ask: Is This Drug Right? - Jan 01, 2005
• Structured Settlements
www.setcap.com - cash for structured settlements, sell annuity, lottery winnings, and more.
• Personal Finance: Finance News Today provides money saving tips, news, and articles on personal finance issues like insurance, real estate, college planning and much more.
• Compare all our 0% Credit Card UK against our 0% balance transfers and cash back deals.
• Browse through our Credit Cards deals and apply online.
• financial tip - financial tips article and more.
• Arizona llc - incorporate a arizona llc. they offer solutions for limited liability company asset protection in arizona and california. incorporation services are provided online with 24 hour filings and expedited approvals. www.paralegal-plus.com for cpa lawyers.
• Credit Repair
repairmycreditnow.com/Credit_Repair_Advice.htm - repair my credit now credit services offers credit repair, restoration and education through our exclusive "v" phase process ™.
• Citibank Home Equity Lines of Credit: Rates as low as Prime - 0.50% variable APR for Life, currently 5.50% variable APR.
• Day Trading - day trading signals for active stock and options traders.
• Ken Langone - ken langone: make my day
• Credit Repair - repair my credit now credit services offers credit repair, restoration and education through our exclusive "v" phase process ™
• Online Option Trading - oexoptions is an oex online stock option trading company offering a free 15-day trial for all new customers.
• fix bad credit
Want to See Your Ads Here? Claim Your Ad Space at Personal Finance Weblog by Writing to Webmaster. Starting at $25/month, see your text ads in more than 2,000 indexed pages at PFBlog, the Best Personal Finance Blog, or MM Money, MM's Daily Personal Finance Readings. Full Rate Card Available Here.
