Bankruptcy Court Approves Southeastern Grocers' $600 Million Reorganization Plan
JACKSONVILLE, FL - Almost two months to the day after announcing it will go through Chapter 11 bankruptcy, Southeastern Grocers is taking a step back into the black. The Florida-based retailer announced this week that the United States Bankruptcy Court for the District of Delaware has confirmed its restructuring plan, which will allow the company to decrease its overall debt levels by approximately $600 million.
"We are delighted with the Court's swift approval which marks a major milestone in the transformation and correction of our business. This confirmation paves the way for us to emerge as a strong, viable business that is well-positioned to succeed in the competitive retail market,” said Anthony Hucker, President and Chief Executive Officer.
According to a press release, Southeastern Grocers expects to complete its financial restructuring process and emerge from Chapter 11 in just a few weeks now that its plan has officially been approved. As previously announced, the $600 million debt decrease includes $522 million of debt exchanged for equity in the reorganized company, which is designed to strengthen its balance sheet and allow it to invest in the business to further support its financial health and long-term success.
"I want to thank our dedicated associates who have remained focused on ensuring our customers and communities can count on us,” Hucker continued. “We're rooted in our purpose and now firmly on our path to success. We're eager to show our customers how far we've come—and how far we're going—as we emerge from this process."
While the retailer reportedly closed 94 stores during its initial bankruptcy announcements, Southeastern Grocers confirmed plans to continue to operate more than 575 stores under the BI-LO, Fresco y Más, Harveys Supermarket and Winn-Dixie banners. Additional information about the Company's restructuring efforts is available at www.segrocers.com/restructuring, and AndNowUKnow will continue to keep our eye on Southeastern Grocers’ progress as it continues to navigate its restructuring plans.