Bi-Lo LLC, the supermarket company that owns the Winn-Dixie chain, is preparing for a potential bankruptcy filing as soon as next month, Bloomberg News reported. The retailer is planning to shut almost 200 stores as part of the move, either before or after the filing. The business, which went bankrupt in previous incarnations in 2005 and 2009, may still find a way to restructure its debt out of court. Bi-Lo is laboring under more than $1 billion in debt following its 2005 buyout by Lone Star Funds. The company and its creditors have held talks to discuss a possible debt-to-equity swap, as well as alternatives such as asset sales, Bloomberg reported last year.
