Investment firms that took control of Winn-Dixie’s parent during its 2018 bankruptcy are poised to reap an $87 million payout after sticking with the supermarket operator through a multiyear turnaround and the COVID-19 pandemic, Bloomberg News reported. Southeastern Grocers Inc. will pay a $2 per share special dividend to its owners, which include Fidelity Investments, AllianceBernstein Holding and Osterweis Capital Management. The move follows a decision to shelve an initial public offering earlier this year. Unlike some privately held firms that take on new crippling debt loads to enrich owners, Southeastern’s payout on Aug. 9 will be funded with existing cash. The payment caps off the revival of Jacksonville, Florida-based Southeastern, which owns the Winn-Dixie, Harveys Supermarket and Fresco y Más chains. Grocers were in tough shape before the pandemic, with several including Southeastern driven into bankruptcy by price wars, razor-thin margins and encroachment by discount giants like Amazon.com, Walmart and Target that used food as loss leaders. Some grocers wound up liquidating.
