Ninety-four stores will close under a restructuring plan announced by retail giant Southeastern Grocers.
Jacksonville, Florida-based Southeastern, parent company of retail chains BI-LO, Harveys, Winn-Dixie, and Fresco y Más, has entered into a Restructuring Support Agreement (RSA) with a group of creditors that hold 80 percent of the company’s unsecured notes.
All of Southeastern’s outstanding secured debt obligations will be paid in full under the agreement, according to the company. In addition, Southeastern has secured 100 percent committed exit financing in the form of a senior secured six-year term loan facility in the original principal amount of $525 million and an asset-based lending revolving credit facility.
After the restructuring, Southeastern will continue to operate 582 stores under its various banners.
"The agreement we announced today is an important step in Southeastern Grocers' transformation to put our company in the best position to succeed in the extremely competitive retail market in which we do business,” says Anthony Hucker, Southeastern’s president and CEO. “With a foundation built on iconic, heritage banners, and with the strong support of our leadership team, we will work through this process as quickly and efficiently as possible. We are excited to emerge with the optimal store footprint and greater financial flexibility to invest in Southeastern Grocers' growth."