February 28, 2005

ISSUE 1052


WINN-DIXIE FILES FOR BANKRUPTCY PROTECTION

Supermarket chain Winn-Dixie announced Tuesday (February 22) that it has filed for bankruptcy reorganization under Chapter 11. The company says it intends to use the reorganization to improve operations and financial performance.

Regarding produce sales to the chain, any claims dated pre-petition for Chapter 11 will have to be filed against the Trust. Any sales that occur post-petition are covered under the language of the Chapter 11 filing. Winn-Dixie is now working off of an $800 million line of credit issued by Wachovia. Some cases are being filed against the PACA Trust regarding Winn-Dixie on unpaid claims of sales before the Chapter 11 filing.

All of the chain’s more than 900 stores in the southeastern U.S. and the Bahamas remain open. For additional information, contact the Division of Marketing.

 

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