"Creating a smaller, but more profitable store base will best position Winn-Dixie for long-term financial health and a successful future," says Peter Lynch, the company's president and CEO, in a statement. "We will be focusing our resources on markets where Winn-Dixie has a strong presence and there are compelling opportunities."

Winn-Dixie is keeping its presence in some areas of Alabama, Florida, Georgia, Louisiana, Mississippi and the Bahamas. The company is altogether exiting both Carolinas, Tennessee and Virginia, as well as northern parts of Alabama, Georgia and Mississippi. The retailer will also close some stores in Louisiana.

The company is also shutting three of its 10 distribution centers and will market its manufacturing plants. After the closures, company executives expect annual revenues to drop from their current $10 billion to $7.5 billion.