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Courts OK Southeastern Grocers, Tops restructuring plans

Supermarket chains may shut stores in emerging from Chapter 11

Russell Redman

May 15, 2018

2 Min Read
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Southeastern Grocers and Tops Friendly Markets have received federal bankruptcy court approval to proceed with their separate restructuring plans.

Jacksonville, Fla.-based Southeastern Grocers said Monday that the U.S. Bankruptcy Court for the District of Delaware has signed off on its amended Chapter 11 reorganization plan and the company expects to wrap up its restructuring and emerge from bankruptcy in the coming weeks.

The supermarket retailer — whose banners include Winn-Dixie, Bi-Lo, Harveys Supermarket and Fresco y Más — announced the restructuring in mid-March and began the process less than two weeks later. Key components of the initiative include a refinancing that will lower debt by about $600 million, including $522 million in debt exchanged for equity in the reorganized company, and the closing of 94 stores.

With the latter move, Southeastern Grocers will be left with more than 575 stores in Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina and South Carolina.

"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,” president and chief executive officer Anthony Hucker said in a statement.

“We're rooted in our purpose and now firmly on our path to success,” he added. “We're eager to show our customers how far we've come — and how far we're going — as we emerge from this process."

Meanwhile, Williamsville, N.Y.-based Tops has been cleared by the U.S. Bankruptcy Court for the Southern District of New York to close stores under its restructuring plan. The company, however, hasn’t specified the number or locations of stores slated for closure.

“On May 10, Tops’ motion outlining procedures when filing store closings was approved by the court, allowing Tops to close any underperforming stores should the supermarket chain decide to do so in the future,” Tops said in a statement Monday. “No timetable nor decisions about store closings have been made.”

Tops had filed documents in late April seeking the court’s permission to shut underperforming stores in the wake of its filing for Chapter 11 bankruptcy protection in February. Overall, Tops operates 169 stores and has five franchisees under its banner in New York, northern Pennsylvania, and western Vermont.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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