Expert: Winn-Dixie bankruptcy would likely spark closure of some stores

Winn-Dixie could be bankrupt for the third time since 2005, and It could have a ripple effect that puts employees out of work.

Winn-Dixie could reportedly close hundreds of its stores. Its parent company, Southeastern Grocers, is laboring under more than $1 billion in debt.

A statement sent to Action News Jax reads in part: “Southeastern Grocers is undertaking an ongoing strategic review in advance of our unsecured bond maturity later this year.”

2017: Winn-Dixie shutters store on Jacksonville's Southside 

Ken Jacobs, a Jacksonville-based real estate attorney, represented creditors during a previous Winn-Dixie bankruptcy filing.

“A Chapter 11 filing would enable them to close less profitable stores, Jacobs said. “[It] keeps more profitable ones operating.”

The bankruptcy filing could come as early as next month, Bloomberg reported, but the company has not publicly confirmed any bankruptcy plans.

Traditional grocery stores have faced increased competition from online retailers like Amazon.

Winn-Dixie isn’t the only locally-based company that is struggling financially. Right next to the Winn Dixie on Baymeadows is Stein Mart.

Jacobs says it could be double trouble for commercial real estate in Jacksonville.

“There’s going to be a challenge for landlords to redevelop these big-box properties so that the foot traffic continues,” Jacobs said.

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