Brookshire Grocery Co. (BGC) will acquire eight Winn-Dixie store locations in south Louisiana from Southeastern Grocers (SEG), whose Bi-Lo subsidiary is reportedly considering bankruptcy.
The deal calls for BGC to acquire Winn-Dixie stores in New Roads, Breaux Bridge, Franklin, New Iberia, Abbeville, Crowley, Rayne and Eunice, La. The stores will become part of BGC’s Super 1 Foods banner.
“We’re excited about this agreement and the opportunity it provides us to further grow and expand in this region. These stores are a strong fit for our Super 1 Foods banner, and we look forward to welcoming new customers and employees in Acadiana,” said Brad Brookshire, chairman and CEO of Tyler, Texas-based BGC. “We’re a family business celebrating our 90th anniversary this year, and we look forward to many more years here.”
After the sale is completed, the stores are expected to reopen within a matter of days under the Super 1 Foods banner.
“We are pleased to have found a strong partner in Brookshire Grocery Company, who shares our focus on customers and who respects and values their employees. We know BGC very well and are confident that the eight stores being transferred will see continued success in their communities,” said Trey Edwards, Winn-Dixie regional VP for Alabama, Louisiana and Mississippi. “Importantly, Winn-Dixie and Super 1 Foods are working together to ensure a smooth transition for associates, and we are thrilled that our associates in these stores will have the opportunity to interview at their current store locations for ongoing positions. We would like to thank the loyal customers who have shopped at these locations and our team of hard-working associates for their commitment to serving our customers."
It was not immediately known if this sell-off is related to the reported closure of up to 200 stores that sister SEG subsidiary Bi-Lo is said to be considering in anticipation of a bankruptcy filing in March. It would be the third time Bi-Lo has sought bankruptcy protection since 2005.
BGC worked with The Food Partners, a Washington, D.C.-based grocery industry investment banking firm, as a strategic and financial adviser for this acquisition.
Known for their everyday low prices, Super 1 Foods opened its first location in Alexandria, La., in 1984. The newest location opened in November 2017 in Youngsville, La. Founded in 1928, BGC operates 176 stores in Texas, Louisiana and Arkansas under the Brookshire's, Super 1 Foods, Fresh by Brookshire's and Spring Market banners.
Meanwhile, news has also broken that Baton Rouge, La.-based Shoppers Value Foods is acquiring seven Winn-Dixie stores in New Orleans and Mississippi from Southeastern Grocers, with plans to take over the sites in late March, according to ABC-affiliated TV station WGNO, in New Orleans.