DIXIE CO-OP TO CEASE OPERATIONS

CHATTANOOGA, Tenn. -- Dixie Saving Stores, a retailer-owned cooperative here, said it plans to transfer its retail accounts to two other wholesalers and shut down its operations Feb. 1.on company."With all the industry consolidation taking place, it became harder to grow, and we've had to recognize that and look to the future. Accordingly, our board of directors decided to make this move."Dixie, which

CHATTANOOGA, Tenn. -- Dixie Saving Stores, a retailer-owned cooperative here, said it plans to transfer its retail accounts to two other wholesalers and shut down its operations Feb. 1.

on company.

"With all the industry consolidation taking place, it became harder to grow, and we've had to recognize that and look to the future. Accordingly, our board of directors decided to make this move."

Dixie, which was founded in 1930, has 230 customers -- 30 independently owned supermarkets, mostly single-store operators, and 200 convenience stores.

St. Goar said Dixie is transferring its supermarket accounts to Laurel Grocery Co., London, Ky., and its convenience-store volume to Head Distributing Co., Smyrna, Ga.

He said the company's 230,000-square-foot full-service distribution center here will be closed and sold.