Winn-Dixie Files for Bankruptcy Protection
New York City, Supermarket operator Winn-Dixie Stores Inc., along with 23 of its U.S. subsidiaries, filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company, whose 920 stores remained open for business, said it had lined an $800 million debtor-in-possession financing facility from Wachovia Bank, which replaces its previous $600 million credit line.
Winn-Dixie has been widely expected to file Chapter 11 after it posted a larger-than-expected quarterly loss earlier this month. The grocer has been struggling under intense competition from Wal-Mart and other rivals. Speculation heated up again last week that a filing was on the way after the chain said it had incorrectly calculated a measure of earnings.
The retailer said that as part of its Chapter 11 restructuring, it would seek additional asset sales and cut expenses. It also said it is taking steps to reduce its lease obligations on previously closed stores.
Read All About It: Workforce Management
New York City, Costs are rising and competitive pressure is increasing. Workforce deployment is becoming riskier and more expensive, and store operations are being complicated by increased labor-law compliance. To succeed in this challenging new environment, retailers need to implement initiatives to cut costs and increase sales, enhance the customer experience, and align store operations with equipment and technology, and the workforce with the work.
John T. Anderson, Retail Industry Manager of Kronos Inc., writes about workforce management in an article called “Driving Retail Business Performance Through Workforce Management.” To read the article in its entirety, click on the Guest Commentaries tab to the left.
Spiegel Plan: Focus on Eddie Bauer
Downers Grove, Ill., Spiegel filed its reorganization plan with the U.S. Bankruptcy Court for the Southern District of New York. The plan contemplates that the business will be reorganized around the Eddie Bauer division of Spiegel, Inc., establishing a new parent company, Eddie Bauer Holdings, Inc. Eddie Bauer will continue to operate through its stores, catalogs and Internet site, and will be headquartered in Redmond, Wash.
Spiegel filed for bankruptcy protection in March 2003.