Winn-Dixie Posts Loss Post-Bankruptcy
Grocery store chain Winn-Dixie Stores said Tuesday it recorded a loss of almost $10 million in the eight weeks since it emerged from bankruptcy.
The company said it posted a loss of $9.9 million after emerging from bankruptcy protection on Nov. 21. In the 8 weeks before the company ended its bankruptcy protection, it earned a profit of $296.7 million.
For the full quarter, Winn-Dixie said its profit rose 21 percent to $286.8 million from $237.5 million in the prior year's quarter.
The company said its results for the full quarter were boosted by a gain of $188.2 million for the discharge of liabilities associated with the company's exit from Chapter 11 and a $144.8 million gain related to the revaluation of assets and liabilities.
Sales rose 9 percent to $1.16 billion from $1.07 billion in the second quarter of 2006. The company said same-store sales fell 0.5 percent in the quarter because of difficult comparisons with the prior year in areas affected by Hurricanes Katrina and Wilma. Last year, many residents were offered government and private assistance and more competitor stores are now open in that area, Winn-Dixie said.
The company also said it now has about $500 million of liquidity, including $367 million of borrowing available under a new credit agreement and $133 million of cash and cash equivalents.